IRLAB Therapeutics carries out a directed share issue in the amount of SEK 130,000,000

December 18, 2020

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This press release may not be made public, published or distributed, directly or indirectly, within or to the United States, Australia, Hong Kong, Japan, Canada, New Zealand, Switzerland, Singapore, South Africa or any other jurisdiction where such action would be unlawful or subject to legal restrictions. Please see additional information at the end of this press release.

The Board of Directors of IRLAB Therapeutics AB ("IRLAB" or the "Company") has based on the authorisation granted by the Annual General Meeting on 7 May 2020, resolved on a directed issue of 3,250,000 shares of class A at an issue price of SEK 40 per share (the "Share Issue"). Through the Share Issue, the Company will receive SEK 130,000,000 before transaction costs. The issue price corresponds to a discount of 3.4 percent in relation to the volume-weighted average price for the Company's share during the last 15 trading days up to and including 18 December 2020. The Share Issue has been subscribed by, inter alia, Fjärde AP-fonden, Daniel Johnsson through Quiq Holding AB, Nyenburgh Holding, Andra AP-fonden, and Handelsbanken Fonder.

"After a successful year with an IND approved in the Unites States, the start of the phase IIb-study with mesdopetam and the listing on Nasdaq Stockholm main market, IRLAB will enter 2021 with a strengthened financial position. An increased institutional ownership and additional cash give us the prerequisites to continue to develop the company at a higher pace", says Gunnar Olsson, Chairman of the Board of Directors. 

"The capital injection gives us the opportunity to increase the pace of our clinical studies and accelerate the preparations for phase III-studies, all to minimize the time to launch of completed pharmaceuticals. Both the mesdopetam and pirepemat-programs address great medical needs, with substantial potential benefits for patients and other interested parties", says Nicholas Waters, CEO.

The Share Issue is carried out with deviation from the shareholders' pre-emption rights in order to enable an increased institutional ownership and to enable larger investments in the clinical projects of the Company with the purpose of accelerating the generation of study results as well as initiating the preparations for the next development phase. This directed issues has also, in the opinion of the Board of Directors, been considered an opportunity to raise capital on market terms in a time- and cost-efficient manner.

As a result of the Share Issue, the number of shares in the Company will increase from 48,498,406 to 51,748,406, of which 51,668,630 shares are of class A and 79,776 shares are of class B, and that the Company's share capital increases from SEK 969,968.12 to 1,034,968.12. The Share Issue entails a dilution of approximately 6.3 percent in relation to the total number of issued shares and votes in the Company, respectively, after the Share Issue.

Advisors

Zonda Partners AB has been Sole Bookrunner, MAQS Advokatbyrå has been legal advisor to IRLAB and Advokatfirman Vinge has been legal advisor to Zonda Partners AB in connection with the Share Issue. Aktieinvest FK AB act as clearing agent.

This disclosure contains information that IRLAB Therapeutics AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 18-12-2020 19:10 CET.