InDex Pharmaceuticals conducts initial public offering in connection with planned listing on Nasdaq First North Stockholm

This press release is not for release, publication or distribution, directly or indirectly, in or into USA, Australia, Canada, Japan or in any other jurisdiction where distribution of this press release would be illegal. See also section IMPORTANT INFORMATION below.

September 13, 2016 - The board of directors of InDex Pharmaceuticals Holding AB (publ) (the ”Company” or “InDex”), has decided to broaden the shareholder base and to raise capital for the development of the Company’s lead drug candidate cobitolimod through a new issue of shares (the “Offering”). The board of directors of the Company will also apply for the Company’s shares of class B to be listed for trading on Nasdaq First North Stockholm.

The Offering in brief

• The Offering is directed to the general public in Sweden, Denmark and Norway as well as to professional investors in Sweden and internationally.
• The Offering comprises issuance of new shares of class B to a total amount of SEK 250 million, which corresponds to maximum 29 761 905 new shares of class B at the fixed subscription price of SEK 8.40 per share.  
• In addition, InDex has committed to issue an additional maximum of 2 976 191 new shares of class B, corresponding to a maximum of 10 percent of the highest number of shares of class B that may be sold in the Offering and at a price equal to the subscription price in order to cover any overallotments in connection with the Offering.  
• Subscription commitments and guarantee commitments have been provided equivalent to 100 percent of the Offering, out of which 44 percent refers to subscription commitments and 56 percent refers to guarantee commitments.
• Application for subscription of new shares in the Offering shall be made during the period from 14th of September 2016 until 27th of September 2016.  
• Provided that the application for listing is approved, the first day of trading is planned to occur on or about the 11th of October 2016. 

About InDex Pharmaceuticals
InDex is a pharmaceutical development company focusing on immunological diseases where there is a high unmet medical need for new treatment options. The Company’s foremost asset is the drug candidate cobitolimod, which is in late stage clinical development for the treatment of moderate to severe active ulcerative colitis - a debilitating, chronic inflammation of the large intestine.

Cobitolimod is a new type of drug that can help patients with moderate to severe ulcerative colitis back to a normal life. InDex has also developed a platform of patent protected discovery stage substances, so called DNA based ImmunoModulatory Sequences (DIMS), with the potential to be used in treatment of various immunological diseases.

InDex is based in Stockholm, Sweden. Main shareholders are SEB Venture Capital, Industrifonden and NeoMed Management. The Company’s operations are mainly conducted through its subsidiary InDex Pharmaceuticals AB. For more information, please visit www.indexpharma.com.

About cobitolimod
Cobitolimod has a new type of mechanism of action. It is a so-called Toll-like receptor 9 (TLR9) agonist, that can provide an anti‐inflammatory effect locally in the large intestine, which may induce mucosal healing and relief of the clinical symptoms in ulcerative colitis.

Cobitolimod has achieved clinical proof-of-concept in moderate to severe active ulcerative colitis, with a very favorable safety profile. Data from four placebo-controlled clinical trials indicate that cobitolimod has statistically significant effects on those endpoints that are most relevant in this disease, both from a regulatory and clinical perspective. These endpoints include the key clinical symptoms such as blood in stool, number of stools, and mucosal healing, respectively.

In January 2016, WHO recommended the INN name cobitolimod. The substance is also known as Kappaproct® and DIMS0150.

Background and reasons       
During the last five years, InDex has gone from a research oriented company based on a platform technology to a professional development company with a clear focus on the clinical development of cobitolimod.

Today there is extensive data from clinical studies with cobitolimod that shows that the substance has the potential to provide a quick improvement of the symptoms that are considered the most relevant, both from a clinical and regulatory perspective in ulcerative colitis.

Based on the promising results of earlier clinical trials, InDex is planning a phase IIb study, which will be called CONDUCT, to evaluate other doses and dose frequencies than tried in prior clinical studies with cobitolimod. The goal is to optimise the treatment and achieve a substantially higher efficacy, while maintaining the excellent safety profile.

The main results from the CONDUCT study are anticipated to be available during 2018. The Company’s capital need until the main results of the study are expected to be available is estimated to approximately MSEK 200.

The Company intends to use the net proceeds from the Offering as follows:

• The majority, 60-70 percent, will be used for external costs for the CONDUCT study of cobitolimod, such as, remuneration to the clinics and the Clinical Research Organisation (CRO) that performs the study.
• A significant part, 25-30 percent, will be used for other activities that are needed to complete cobitolimod for phase III, such as additional toxicological studies, further development of the manufacturing process, patents, commercialisation preparations and internal costs to run the Company’s operations, including the CONDUCT study.
• A smaller part, 5-10 percent, will be used for bringing additional DIMS substances through pre-clinical development, and make ready for clinical trials.

Thus, the entire proceeds from the Offering cover the working capital need for the upcoming 12 months.

The Offering

• The Offering is directed to the general public in Sweden, Denmark and Norway as well as to professional investors in Sweden and internationally. The reason for the deviation from the shareholders’ preferential rights is to broaden the shareholder base and enable an increased institutional ownership.  
• The Offering comprises issuance of new shares of class B to a total amount of SEK 250 million, which corresponds to maximum 29 761 905 new shares of class B at the fixed subscription price of SEK 8.40 per share. The subscription price has been decided by the Company’s board of directors and the majority shareholders in consultation with their financial adviser Stockholm Corporate Finance.
• In addition, InDex has committed to issue an additional maximum of 2 976 191 new shares of class B, corresponding to a maximum of 10 percent of the highest number of shares that may be sold in the Offering in order to cover any overallotments in connection with the Offering.  
• Subscription commitments and guarantee commitments have been provided equivalent to 100 percent of the Offering, out of which 44 percent refers to subscription commitments and 56 percent refers to guarantee commitments.
• Application for subscription of new shares in the Offering shall be made during the period from the 14th of September 2016 until the 27th of September 2016.
• Payment shall be made no later than three (3) business days after the issuance of the contract note confirming the allotment. The expected settlement day of the Offering is 4th of October 2016.
• A prospectus with full terms and conditions of the Offering will be published no later than the day before the first day of the application for subscription period. The publication will be announced by the Company through a press release.
• Provided that the application for listing is approved, the first day of trading is planned to occur on or about the 11th of October 2016 and the shares of class B will be traded under the short name ”INDEX”.
• The Company’s main owners (SEB Venture Capital, Industrifonden och NeoMed Management) has committed to a lock-up during a period of 12 months after the day of the listing.

Indicative time table

Ownership and share capital
The Company’s share capital currently amounts to SEK 601,344.68 divided into 30,067,234 shares (11,068,117 shares of class A, 15,987,068 shares of class B and 3,012,049 preference shares), giving each share a quotient (par) value of SEK 0.02. The Offering and the overallotment option may each separately cause the number of shares in the Company to increase by a maximum of 29 761 905 and 2 976 191, which corresponds to a dilution of approximately a maximum of 49.74 and 9.01 percent of the current number of shares. Thus, the Offering and the overallotment option may cause the number of shares in the Company to increase by a maximum of 32 738 096 in total to a maximum of 62 805 330 in total, which corresponds to a dilution of approximately, in total, a maximum of 52.13 percent of the current number of shares. More information about the Company’s share structure and share capital and possible dilutive effects as a result of outstanding warrants and a share issue of a maximum 2,634,279 new shares directed to the shareholder NeoMed will be found in the prospectus prepared in relation to the Offering.

Advisers                   
Stockholm Corporate Finance AB is the financial adviser and Setterwalls Advokatbyrå AB is the legal adviser to the Company in relation to the Offering. Aqurat Fondkommission AB acts as issuer agent in relation to the Offering. Nordnet Bank AB acts as Selling Agent in relation to the Offering.

For further information:
Peter Zerhouni, CEO
Phone no.: +46 8 508 847 35
E-mail: peter.zerhouni@indexpharma.com 

Miscellaneous
The board of directors of the Company will apply for listing of the Company’s shares of class B on Nasdaq First North Stockholm and has appointed Redeye AB as Certified Adviser.

For further information, please visit www.indexpharma.com.

IMPORTANT INFORMATION
This document has not been approved by any regulatory authority. The document is a press release and not a prospectus and investors should not subscribe for or purchase securities referred to in this document except on the basis of information contained in the prospectus that will be approved by the Swedish Financial Supervisory Authority and be kept available at the company’s website. Distribution of this press release could in some jurisdictions be subject to restrictions according to law and recipients of this, or part of this, are required to inform themselves of, and comply with, such legal restrictions. Information in this press release should not constitute an offer to sell shares, or a solicitation of any offer to purchase shares, nor should any sale of the securities referred to herein be made, in any jurisdiction where such offer, solicitation of any offer to purchase, or sale would require preparing additional prospectus or other offering documents, or would not be lawful without registration or applicable exemptions from registering according to security acts in any such jurisdiction.

This press release neither constitutes, nor constitutes a part of, an offer or a solicitation of an offer to purchase or subscribe for securities in the United States. Securities referred to herein have not been, and will not be, registered in accordance with the American Securities Act of 1933 ("Securities Act"), and may not be offered or sold within the United States absent registration in accordance with the Securities Act, or an exemption therefrom. Securities referred to herein are not offered to the general public in the United States. Copies of this press release is not being made and may not be distributed or sent, in whole, or part, directly or indirectly, in or into Australia, Hong Kong, Japan, Canada, New Zealand, Switzerland, Singapore, South Africa or the United States or to any other jurisdiction where the distribution respectively the issuance of this press release would be unlawful.  

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