Today, the subscription period begins in Initiator Pharma's rights issue

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Today, 12 July 2021, the subscription period begins in Initiator Pharma A/S (“Initiator Pharma” or “the Company”) rights issue of shares in which the public is also given the opportunity to subscribe. The subscription period runs until and including 26 July 2021. A fully subscribed rights issue provides the Company with a maximum of approximately SEK 29.4 million before issue costs. Prior to the rights issue, Initiator Pharma has through written agreements agreed on subscription commitments and underwriting commitments corresponding to a total of 100 percent of the issue amount.

The capital from the rights issue is primarily intended to finance the clinical development of the Company's new Orphan Drug indication and at the same time ensures operating costs and continued development of the already ongoing and upcoming clinical trials with IP2018 and IPED2015 for treatment of erectile dysfunction of psychogenic and organic origin to a good bit into 2023. Prospectus, teaser and subscription forms are available on the Company's (www.initiatorpharma.com), Spotlight Stock Market’s (www.spotlightstockmarket.com) and Nordic Issuing’s (www.nordic-issuing.se) webpages.

The offer in brief

Subscription period: 12-26 July 2021.

Record date and preferential rights: The record date was on 5 July 2021. Anyone who held shares in Initiator Pharma on the record date owns preferential rights in the issue. The last day for trading in Initiator Pharma's shares, including the right to receive subscription rights, was on 1 July 2021. The first day for trading in Initiator Pharma's share without the right to receive subscription rights was on 2 July 2021. One (1) subscription right is received for each existing share. Nine (9) subscription rights entitles to subscribe for two (2) new shares.

Subscription price: SEK 3.70 per share (DKK 2.72).

Issue volume: The offer comprises a maximum of 7,958,628 shares, corresponding to approximately SEK 29.4 million.

Pre-subscription- and guarantee commitments: Prior to the preferential rights issue, Initiator Pharma has agreed on subscription commitments and underwriting commitments corresponding to 100 percent of the issue amount.

Number of shares before the rights issue: 35,813,834 shares.

Valuation in current issue (pre-money): Approximately SEK 132.5 million.

Trading in subscription rights: Trading in subscription rights on Spotlight Stock Market will take place during the period 12-21 July 2021. It is noted that trading in subscription rights will only take place in Sweden (i.e. not in Denmark).

Trading with BTA: Trading with BTA (Paid Subscribed Share) on Spotlight Stock Market will take place from 12 July 2021 and last until the issue is registered with the Danish Business Authority. This registration is expected to take place at the beginning of August 2021. It is noted that trading in BTA will only take place in Sweden (i.e. not in Denmark).

For further information about Initiator Pharma, please contact:

Claus Elsborg Olesen, CEO

Phone: +45 6126 0035

E-mail: ceo@initiatorpharma.com

The information was submitted for publication, through the agency of the contact person set out above on 12 July 2021 at 08:30.

About Initiator Pharma

Initiator Pharma is a clinical-stage Life Science company based in Aarhus, Denmark. The company’s main clinical Phase assets are IPED2015, intended for patients with erectile dysfunction, and IP2018, for the treatment of psychogenic erectile dysfunction. The treatments both represent First in Class treatments for psychogenic and organic ED, respectively, and are expected to improve the quality of life for a growing number of patients who are not responding to or cannot be treated with existing drugs on the market. Read more on www.initiatorpharma.com.

About Erectile dysfunction (ED)

Erectile dysfunction is sexual dysfunction characterized by the inability to develop or maintain an erection of the penis during sexual activity. ED affects more than 150 million men worldwide and that number is expected to increase to more than 320 million by 2025, fuelled by aging demographics and increasing prevalence of lifestyle diseases such as diabetes, and performance anxiety. The number of ED patients is most likely grossly underestimated, particularly for Psychogenic patient segment. ED patients have decreased quality of life due to various psychosocial factors such as low self-esteem, depression, sadness, anger, frustration, anxiety, medication, and relationship problems (1,2,3). Erectile dysfunction can be divided into two main categories – Organic and Psychogenic ED – that requires different treatments. Initiator Pharma is developing IPED2015 and IP2018, respectively, for these similar but separate patient segments.

  1. Shabsigh R, et al. (1998) Increased incidence of depressive symptoms in men with erectile dysfunction. Urology52(5):848–852.
  2. Mccabe MP, Althof SE (2014) A systematic review of the psychosocial outcomes associated with erectile dysfunction: Does the impact of erectile dysfunction extend beyond a man’s inability to have sex? J Sex Med11(2):347–363.
  3. Nguyen HMT, Gabrielson AT, Hellstrom WJG (2017) Erectile Dysfunction in Young Men—A Review of the Prevalence and Risk Factors. Sex Med Rev5(4):508–520.