Enzymatica AB: The Board of Directors of Enzymatica AB decides on rights issue of SEK 98.7 million

Press release

October 18, 2018

The Board of Directors of Enzymatica AB decides on rights issue of SEK 98.7 million

The Board of Directors of Enzymatica AB (publ) has decided to carry out a rights issue of a maximum of SEK 98,678,187.20 with preferential rights for existing shareholders. The purpose of the rights issue is to finance continued marketing campaigns and clinical studies on the efficacy of ColdZyme besides repaying a bridge loan. The rights issue is subject to approval by an Extraordinary General Meeting to be held on November 5, 2018. Under the terms of the rights issue, one (1) existing share in Enzymatica carries one (1) subscription right, while seven (7) subscription rights entitle the holder to subscribe to four (4) new shares at a price of SEK 1.90 per share. The company intends to secure the rights issue to 100 percent through subscription commitments and underwriting agreements.

Background and reasons

Enzymatica AB develops and sells medical devices for infection-related diseases. The products are based on a barrier technology that includes marine enzymes. The company's first product is ColdZyme® Mouth Spray, which can prevent colds or reduce the duration of disease. The product has been launched in around ten markets. The strategy is to continue to grow by strengthening the company's position in existing markets and expanding into new geographic markets through established partners.

ColdZyme, which is one of few products that addresses the cause of colds by protecting the mouth and throat against viruses, has established itself in just a few years as one of the best-selling cold products in Swedish pharmacies. The product is currently sold in Sweden, Denmark, Norway, Finland, Iceland, the UK, Spain and Greece, as well as through its partner STADA in Germany, Belgium and Austria. The Company is negotiating with a number of potential distributors to launch ColdZyme in other markets.

On October 17, 2018 Enzymatica entered into an agreement regarding the Japanese market, one of the largest health care markets in the world. Access to the Japanese market is conditioned upon approval by the regulatory authorities, with expected launch in 2020.

Enzymatica believes there is substantial potential for ColdZyme and that the company is well-positioned for continued growth that will result in rising profitability. The impending rights issue will strengthen the company's financial position while enabling continued growth initiatives and implementation of the company's clinical trial program. In addition, the proceeds from the rights issue will be used to repay the bridge loan of SEK 30 million from June 2018.

Terms and conditions in brief

Under the terms of the rights issue, seven (7) existing shares carry the right to subscribe for four (4) new shares at a price of SEK 1.90 per share. The rights issue is 28.8 percent covered by subscription commitments from board members, management and a number of the company's major shareholders. In addition, the company has entered into underwriting agreements with two major shareholders of SEK 46.9 million, equivalent to 47.5 percent of the right issue. In total, the right issue comprises of 76.3 percent of subscription commitments and underwriting agreements.

The Board of Directors intends to secure the rights issue to 100 percent through subscription commitments and underwriting agreements. Assuming full subscription, Enzymatica will raise SEK 98,678,187.20 before issue expenses.

One (1) existing share in Enzymatica carries one (1) subscription right, while seven (7) subscription rights entitle the holder to subscribe to four (4] new shares. The share capital will therefore increase by a maximum of SEK 2,077,436.20 and the number of shares by a maximum of 51,935,888 shares. The subscription price is SEK 1.90 per share.

The record date at Euroclear Sweden AB for participation in the rights issue is November 12, 2018.

The subscription period will run from and including November 14, 2018 up to and including November 28, 2018.

Subscription rights not exercised by that date will expire and will lose their value. Trading in subscription rights will take place on Nasdaq First North from and including November 14, 2018 up to and including November 26, 2018.

If not all the shares are subscribed for by exercise of subscription rights, the Board of Directors shall resolve on allotment of shares subscribed for without the exercise of subscriptions rights up to the maximum amount of the share issue. Such shares shall in firstly be allotted to those who have also subscribed for shares by exercise of subscription rights, regardless of them being shareholders on the record date or not, pro rata in relation to the number of subscription rights which each person has exercised for subscription. Secondly, such shares shall be allotted to members of the management group who have applied for subscription without the exercise of subscription rights, and thirdly to others, pro rata in relation to their applied interest. To the extent that allotment in accordance to the above cannot be made pro rata, allotment shall be made by drawing of lots. Any remaining shares shall be allotted to those who have guaranteed the new share issue, pro rata in relation to the guaranteed amount.

The Board of Directors' decision on the rights issue is subject to approval by an Extraordinary General Meeting to be held on November 5, 2018. Notice of the Extraordinary General Meeting will be announced in a separate press release and will be published shortly in Post- och Inrikes Tidningar. The notice will also be advertised in Dagens Industri.

Preliminary timetable for rights issue

November 5, 2018             Extraordinary General Meeting

November 8, 2018             Last day of trading in the share including subscription rights

November 9, 2018             First day of trading in the share excluding subscription rights

November 12, 2018           Record date for participation in the rights issue

November 14-28, 2018     Subscription period

November 14-26, 2018     Trading in subscription rights

December 3, 2018             Estimated date of announcement of the outcome of the rights issue

The company will prepare a prospectus for the rights issue which will be published before the subscription period begins.

Adviser

Erik Penser Bank AB is Enzymatica's financial adviser in connection with the rights issue. Mannheimer Swartling is the Company's legal adviser.

The information in this press release is information that Enzymatica is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 8:00 CET on 18 October, 2018.

For more information, please contact:

Fredrik Lindberg, CEO, Enzymatica AB
Tel: +46 (0)708 86 53 70 | Email: fredrik.lindberg@enzymatica.com
Carl-Johan Wachtmeister, Head of Corporate Communications, Enzymatica AB
Tel.: +46 (0)701 88 50 21 | Email: carl-johan.wachtmeister@enzymatica.com

About Enzymatica AB
Enzymatica AB is a Swedish life science company that develops and sells medical devices for infection-related diseases. The products are based on a barrier technology that includes marine enzymes. The company's first product is ColdZyme® Mouth Spray, which can prevent colds and reduce the duration of disease. The product has been launched in about ten markets. The strategy is to continue to grow by strengthening the Company's position in existing markets and expanding into new geographic markets through established partners. The company has its headquarters in Lund and is listed on Nasdaq First North. For more information, visit: www.enzymatica.com.

Enzymatica's certified adviser is Erik Penser Bank.

Enzymaticas Certified Adviser är Erik Penser Bank.

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