Modus Therapeutics issue of units prior to listing was oversubscribed

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STOCKHOLM, SWEDEN – July 15, 2021: On July 13, 2021, the subscription period in Modus Therapeutics Holding AB ("Modus Therapeutics" or "the Company") issue of units before listing on the Nasdaq First North Growth Market ("First North") ended. The issue was subscribed to a total of approximately SEK 37.3 million, corresponding to a subscription ratio of approximately 113 percent. The Company will thus receive approximately SEK 33 million before issue costs amounting to approximately SEK 3.3 million. Through the issue, the Company will receive approximately 1,180 new shareholders. In light of the extended processing times that currently prevail at the Swedish Companies Registration Office, the first day of trading in Modus Therapeutics on First North is expected to be July 29, 2021. The Company and the legal advisor are working to bring forward the first day for trading, but it is dependent on the Swedish Companies Registration Office's registration of the issue. If no change becomes relevant, the above date (July 29, 2021) applies, otherwise the change will be announced by press release.

CEO John Öhd comments,

"We would like to thank everyone who participated in the issue of units, and we are very grateful for the interest in Modus Therapeutics, as shown in this funding. We will continue our efforts and, with full force, develop sevuparin and our drug candidate against sepsis and septic shock. The capital injection allows us to carry out a clinical phase Ib-LPS provocation study and begin preparations for a phase IIa study. Sevuparin has shown good safety and tolerability in previous clinical trials in other areas, which gives us an edge in the upcoming clinical phase Ib/IIa studies.”

Subscription and allocation

The issue was subscribed for to a total of approximately SEK 37.3 million, including subscription commitments, corresponding to a subscription ratio of approximately 113 percent. 5,156,300 shares and 5,156,300 warrants of series TO 1 will be newly issued and Modus Therapeutics will be provided approximately SEK 33 million before issue costs, which are estimated to amount to approximately SEK 3.3 million. Through the issue, Modus Therapeutics will add approximately 1,180 new shareholders. The Board has decided on the allocation of units in accordance with the principles stated in the prospectus, and settlement notes are expected to be sent out today, July 15, 2021. Subscribers who have not been allocated units will not receive a settlement note.

Number of shares and share capital

When Modus Therapeutics' issue has been registered at the Swedish Companies Registration Office, the total number of shares will amount to 16,100,050, and the share capital will amount to SEK 966,003.00. The total number of warrants of series TO 1 will amount to 5,156,300.

First trading day

The first day of trading is dependent on the Swedish Companies Registration Office's registration of the issue. There are currently extended processing times, which is why it is estimated that the first day of trading in Modus Therapeutic's shares and warrants of series TO 1 on First North is scheduled for July 29, 2021, which is one week later than previously planned. If no change becomes relevant, the above date (July 29, 2021) applies, otherwise the change will be announced by press release. The share will be traded under the short name “MODTX” and the share's ISIN code is SE0015897904 and warrants of series TO 1 will be traded under the short name “MODTX TO 1” and ISIN code SE0016075568.

Financial advisor, legal advisor and issuing agent

Sedermera Fondkommission is the financial advisor and Markets & Corporate Law Nordic AB is the legal advisor to Modus Therapeutics in connection with the issue of units. Nordic Issuing acts as issuing agent.

For more information about the Listing Issue and the planned listing, please contact:

Sedermera Fondkommission

Phone: +46 (0) 40 615 14 10

Email: info@sedermera.se

For more information on Modus Therapeutics, please contact:

John Öhd, CEO, Modus Therapeutics

Phone: +46 (0) 70 766 80 97

Email: john.ohd@modustx.com

This information is such information that Modus Therapeutics Holding AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the above contact person, for publication on July 15, 2021.

Certified Adviser

Svensk Kapitalmarknadsgranskning AB

Phone: +46 11 32 30 732

Email: ca@skmg.se

***

About Modus Therapeutics AB

Modus Therapeutics is a Swedish biotech company developing sevuparin with a focus on diseases with high unmet medical need. The Company’s near-term focus is to develop sevuparin for patients with sepsis/septic shock, a severe and often fatal condition. Sepsis/septic shock constitutes a bacteria-induced state of severe systemic inflammation. Severe systemic inflammation can also occur from several other serious medical events such as major surgery, trauma, burns, autoimmunity to mention a few, which are also potential high need indications of interest for sevuparin. Modus is backed by Karolinska Development AB (Nasdaq Stockholm: KDEV), KDev Investments AB, (Karolinska Development AB and Rosetta Capital), The Foundation for Baltic and European Studies (Östersjöstiftelsen) and Praktikerinvest AB.

About sevuparin

Sevuparin is a clinical stage, innovative proprietary polysaccharide drug with a multimodal mechanism of action, including anti-inflammatory, anti-adhesive and anti-aggregate effects.  Sevuparin is a heparinoid with markedly attenuated anti-coagulation features that allows severalfold higher doses to be given, compared to regular heparinoids, without the associated risk for bleeding side-effects. Two routes of administration of sevuparin are currently being tested – an IV formulation for in-patient administration and a subcutaneous formulation that allows ambulatory and home care administration. 

About severe systemic inflammation

Severe systemic inflammation conditions (also known as systemic inflammatory response syndrome, SIRS) are feared complications of severe medical conditions such as infection, trauma, and major surgery. It is characterized by an uncontrolled systemic inflammatory response that can progress into shock and multi-organ failure. One such manifestation is septic shock, which is a leading cause of death in intensive care units worldwide, with mortality rates typically exceeding 30%.

In systemic inflammation reactions, vascular hyper-permeability caused by the inflammatory response, may cause significant endothelial damage, plasma leakage and excessive edema formation. The pulmonary circulation is particularly vulnerable leading to respiratory distress, and in time more advanced multi-organ damage ensues. Neutrophil granulocytes, releasing an array of potent inflammatory mediators exhibiting permeability–increasing properties, are critically involved in the capillary-alveolar barrier breakdown.

There is currently no pharmaceutical product available that can be specifically used to treat patients with uncontrolled systemic inflammation such as sepsis. The current standard of care for hospitalized patients relies on aggressive fluid therapy, vasopressors, oxygen, corticoid steroids and mechanical ventilation.

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