On June 3, 2020 Isofol Medical AB (publ) (Nasdaq First North Premier Growth Market: ISOFOL) ("Isofol" or the "Company") reported that fully guaranteed new share issue with preferential rights for the Company’s existing shareholders (the "Rights Issue"), which ended on June 1, 2020, was oversubscribed (Press release, Isofol Medical, JUN 3, 2020, View Source [SID1234561554]). Due to the strong demand from strategic investors, a directed issue with deviation from the shareholders’ preferential rights of approximately SEK 30 million (the "Over-Allotment Option") was exercised. Through the Rights Issue and the Over-Allotment Option, Isofol will receive proceeds amounting to approximately SEK 180 million before transaction costs.

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Not for publication, distribution or release, directly or indirectly, in whole or in part, within or into the US, Canada, Japan, Australia, Hong Kong, New Zeeland or any other jurisdiction in which such publication, distribution or release may be contravening to any applicable laws or rules. Additional restrictions are applicable, please see "Important information" in the end of this press release.

The result of the Rights Issue of maximum 42,739,736 shares shows that 41,501,048 new shares, corresponding to approximately 97.1 percent of the Rights Issue, have been subscribed for with subscription rights. Additionally, 94,170,568 shares were subscribed for without subscription rights of which 1,238,688 shares, corresponding to 2.9 percent of the Rights Issue, have been allotted to investors that have subscribed for shares without subscription rights. The Rights Issue is thus oversubscribed. Allotment of shares subscribed for without subscription rights has been made in accordance with the resolved allotment principles. Notice of allotment of shares subscribed for without subscription rights will only be sent to those who have been allotted shares. Payment shall be made in accordance with the instructions on the contract note. Nominee-registered shareholders will receive notice of allotment and payment in accordance with the procedures of each nominee.

Due to the oversubscription of the Rights Issue, the Board of Directors of Isofol has exercised the Over-Allotment Option to meet additional demand from strategic investors through a directed issue of 8,571,428 new shares. Shares in the Over-Allotment Option were allotted to several investors, among others, The Fourth Swedish National Pension Fund ("AP4"), thereby broadening Isofol’s shareholder base.

Isofol’s CEO Ulf Jungnelius comments: "We are very pleased with the strong support from both existing and new shareholders in the Rights Issue which made it possible to exercise the Over-Allotment Option. The Rights Issue in combination with the Over-Allotment Option will give Isofol the financial resources to execute the global Phase III study AGENT and ensure that we continue our successful development of arfolitixorin in accordance with our business plan and strategy."

Following the Rights Issue and Over-Allotment Option, Isofol’s share capital will increase by approximately SEK 1,570,993.9 to approximately SEK 2,552,442.3 and the number of shares in Isofol will increase by 51,311,164 shares to 83,365,966 shares.

The shares subscribed for with subscription rights are expected to be registered with the Swedish Companies Registration Office (the "SCRO") on or about June 5, 2020 and are expected to begin trading on Nasdaq First North Premier Growth Market on June 9, 2020.

The shares subscribed for without subscription rights and through exercise of the Over-Allotment Option are expected to be registered with the SCRO on or about June 16, 2020 and are expected to begin trading on Nasdaq First North Premier Growth Market on June 18, 2020.

Advisers
Carnegie Investment Bank AB (publ) and Pareto Securities AB act as Joint Bookrunners in connection with the Rights Issue and the potential Over-Allotment Option. Vinge law firm acts as legal adviser to Isofol, and Baker McKenzie acts as legal adviser to the Joint Bookrunners.

This information is such information that Isofol Medical AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication through the agency of the Company’s CEO at 08:00 CET on June 3, 2020.

About arfolitixorin
Arfolitixorin is Isofol’s proprietary drug candidate being developed to increase the efficacy of standard of care chemotherapy for advanced colorectal cancer. The drug candidate is currently being studied in a global Phase III study, AGENT. As the key active metabolite of the widely used folate-based drugs, arfolitixorin can potentially benefit all patients with advanced colorectal cancer, as it does not require complicated metabolic activation to become effective.