Scandinavian ChemoTech AB - Interim report Q1 January – March 2021 Executive Summary of the first quarter

First quarter

• Net sales amounted to kSEK 25 (90)
• The order book amounted to kSEK 422 at the end of the first quarter
• Profit before tax amounted to kSEK -2 785 (-3 464)
• Earnings per share amounted to SEK -0,33 (-1,02)
• Cash flow from operating activities totaled to kSEK -5 564 (-4 120)

Important events during the quarter

• ChemoTech receives a final injunction from the European Patent Office that the patent for the Company’s innovation for TSE treatment of skeletal metastases and deep seated tumours will be granted
• ChemoTech was added approximately SEK 13.6 million before issue costs through the use of the warrant

Important events after the quarter

• Eva Ståhl Wernersson assumes the role of QM / RA Director
• Vetiqure AB is recruiting a product specialist Elin Wallin and ChemoTech are recruiting COO Urban Widén
• In April 2021, ChemoTech signed a loan for 10,000 KSEK which makes the board believe that the business can be maintained throughout the financial year of 2021

SUMMARY
The first quarter of the year got off to a good start with progress within the CE marking of IQwave and that we could start up operations in India again after a long-term lock-down. This enabled us to resume marketing and gather ours treating physicians to several planning meetings for initiation of new treatments when the restrictions in India were temporarily relieved.

Sales were kSEK 25 during the period and the result was kSEK -2,785 compared to kSEK -3,464 for the same period last year. We have several machines in our order book but the reintroduction of strict restrictions in the wake of the pandemic which has led to that deliveries had to be postponed to the future. Cash flow was positive for the period, kSEK 4,318, which depends on the redemption of the warrants in January.

Part of the new capital was used to repay the two loans that the company had. To strengthen the company after the repayments at the end of the quarter a new credit in the form of a loan of mSEK 10 from external financiers was arranged.

In product development we have continued to work with the development of new electrodes to treat deep-seated tumours. Our goal is to be able to do this and to have a CE marked treatment kit ready by the end of this year. Unfortunately we did not finish the CE marking during the first quarter but it is very gratifying that our notified body has granted a final audit of IQwave and the TSE-platform. It should be noted that this does not guarantee a positive outcome and we have a continued intensive work before us until that day.

ChemoTech’s patent portfolio now consists of three patent families, i.e. three independent innovations, which creates significant attraction value for ChemoTech in future license agreements or in collaborations with some of the major players in Oncology and/or Oncological Orthopedics.

We have previously received a first case study with very promising results published in Trends in Cancer Research Vol.13, 2018 and have an ongoing study in Malaysia. This is an area that ChemoTech sees a great need to strengthen. As part of this we have begun to expand the organization and add new resources to our business, we therefore recently recruited Urban Widén as COO. This in turn means that the CEO can devote more time to clinical development, continue to create conditions for new innovations and complete our Horizon application. Building a competent organisation to start and run clinical trials will be absolutely crucial as we expand with Europe and the United States as our main markets.

The new subsidiary in veterinary medicine, Vetiqure, has unfortunately also suffered from the ongoing pandemic and the company’s resources have also been temporarily re-prioritised for the ongoing CE marking of IQwaveTM . During the quarter, we successfully recruited a product specialist who will focus on getting sales of vetIQureTM started.

The full version of the Interim Q1 report was published in Swedish May 4th 2021 at 08.30.

For further information please contact: Mohan Frick, CEO

+46 (0)10-218 93 00

info@chemotech.se

Certified Adviser: Erik Penser Bank, Tel: +46 8 463 80 00, E-mail: certifiedadviser@penser.se

Scandinavian ChemoTech AB (publ)
ChemoTech is a Swedish medical technology company based in Lund that has developed a patented technology platform to offer cancer patients access to a new treatment alternative, Tumour Specific Electroporation™ (TSE), available for treatment of both humans and animals. There are a large number of cancer patients whose tumours for various reasons cannot be treated by conventional methods but where TSE can be a solution. Therefore, the company continuously evaluates new opportunities and areas of application for the technology. ChemoTech's shares (CMOTEC B) are listed on Nasdaq First North Growth Market in Stockholm and Erik Penser Bank is the company's Certified Adviser. Read more at: www.chemotech.se.