Additional: RhoVac Plans Issuance of Fully Secured Convertible Debt Rights to Fund Operations Following Successful Phase IIb Clinical Study

Additional: RhoVac Plans Issuance of Fully Secured Convertible Debt Rights to Fund Operations Following Successful Phase IIb Clinical Study

February 09, 2022

Complement: appendix added to the previous version. RhoVac AB (“RhoVac”) announces today, February 92022, that the Board of Directors intends to decide on the completion of an issue with preferential rights of a convertible loan (“the Proposed Offering”) of approx. SEK 25m in March/April 2022. The proposed offer is by way of a written agreement fully guaranteed, free of charge, by RhoVac’s principal shareholder, M2 Asset Management AB. The objective of the Proposed Offer is to further ensure that the company, given the positive results of the study, has the financial strength necessary to negotiate and optimally conclude the follow-up of the phase IIb clinical study. . Phase IIb results are expected in May/June 2022 and participants in the planned offering would have the option to convert the loan into shares after that at a price of SEK 40/share in June/July. Fully converted, the shares issued would correspond to 3.2% of the total shares.

The planned offer is to be extended to all shareholders and is fully underwritten by RhoVac’s largest shareholder, Rutger Arnhult, through his company M2 Asset Management AB. The guarantor does not receive any compensation for the guarantee commitment. The convertible loan pays a fixed annual interest rate of 10% and if the convertible loan is not converted into shares, it will be repaid in full within one year. The planned offering therefore aims to give participants the right, but not the obligation, to convert the loan into shares at a price of SEK 40/share in June/July 2022, after the primary result of the clinical phase study IIb will have been known. The solution is specially designed to offer existing shareholders the possibility of benefiting from an expected valuation, based on successful study results, by having the possibility of converting the loan into shares at the pre-established price of 40 SEK/share, no matter what the share price is after the presentation of the main results of the study, presumably in May/June 2022. For the company, the advantage is that this rules out a potential need to raise funds later, while by negotiating and executing the Phase IIb follow-up study, on the back of the study’s positive results. A preliminary timetable for the issuance of the convertible loan is presented in the attached annex.

RhoVac started the Phase IIb (BRaVac) clinical trial with the company’s drug candidate, RV001 (onilcamotide), at the end of 2019, in patients with prostate cancer with biochemical recurrence (elevated PSA) after curative treatment. In November 2020, RhoVac was awarded Accelerated designation by the FDA for its drug candidate in this cancer indication. RhoVac currently expects to complete the study and present key results by May/June 2022. The objective of the study is to show that RV001 (onilcamotide) can significantly prevent or delay the progression of this large group of patients for whom no standard treatment is available today. Based on the positive Phase IIb results, RhoVac intends to negotiate an acquisition or license agreement with a company that has the best possible capabilities for Phase III development in prostate cancer, for development potential in other areas and for a successful drug launch. .

RhoVac CEO Anders Månsson comments:“The Board of Directors unanimously agrees that it is preferable to strengthen the company’s cash position somewhat before entering into negotiations and executing the follow-up of Phase IIb which would follow to a positive result of the study. In doing so, we want to offer shareholders the opportunity to participate more in an expected increase in valuation that would come from the positive results of the phase IIb study, by offering the possibility of converting the loan into shares, at SEK 40/share, after the results of phase IIb, and regardless of the price of the stock market at that time. As such, we suggest this is a win-win solution for the company and its shareholders.”

Annex – Preliminary timetable for the issuance of convertible debt rights

Please note that the schedule below is preliminary and may be subject to change.
March 4, 2022 – Board meeting to decide on the issue of convertible debt rights
March 11, 2022 – Record date in Euroclear to receive the unit rights

March 17, 2022 – Beginning of the subscription period
March 28, 2022 – Last trading day with unitary rights
March 31, 2022 – End of subscription period
April 5, 2022 – Press release regarding the outcome of the capital increase

June/July (dates to be confirmed), 2022 – Conversion Period

This disclosure contains information that RhoVac is required to make public pursuant to the EU Market Abuse Regulation (EU No. 596/2014). The information was submitted for publication, through the contact person, on 09-02-2022 09:31 CET.

For more information please contact:
Anders Månsson – CEO, RhoVac AB
Telephone: +46 73 751 7278
E-mail: [email protected]

About RhoVac AB

RhoVac was established as a private company in Denmark in 2007. Under this company, the basic development stages of the drug candidate RV001 were undertaken. In 2015 the Swedish company RhoVac AB was established, which now has its head office and in 2016 the company was listed on the Aktietorget in Sweden (now Spotlight Stock Market). RhoVac has passed the early stages of development. In 2018, the first clinical trial (phase I/II) was completed in prostate cancer, demonstrating that RV001 has good safety and is well tolerated, and that the drug provides the expected immune response that will exert its effect on cancer cells. The strong immune response has also been shown to last over time. Therefore, RhoVac initiated a Phase IIb clinical trial which enrolled more than 180 prostate cancer patients. The study will end in the first half of 2022 and is designed to show, with statistical significance, the effect of RV001 in preventing disease progression in prostate cancer following surgery or radiotherapy to the tumor. primary. RhoVac has been listed on Spotlight, Sweden, a multilateral trading facility (MTF) since March 2016. The stock trades under the symbol RHOVAC. Read more on RhoVac is analyzed by EDISON Group as well as by the Swedish “Analysguiden”. Links to these analyzes can be found below:

Analysis Guide:

About BRaVac

BRaVac is a randomized, placebo-controlled, double-blind study, the primary objective of which is to assess whether treatment with the drug candidate RV001 can prevent or limit the development of advanced prostate cancer after treatment with curative aim. The phase IIb clinical study is an international multicenter study which recruited more than 180 patients in six European countries (Denmark, Finland, Sweden, Belgium, Germany and United Kingdom) and in the United States. After treatment, the study patient will enter an extended follow-up that could last until the fourth quarter of 2022.

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