Moberg Pharma enters financing agreement of up to SEK 216 million for further investments in MOB-015

STOCKHOLM, March 23^rd, 2020 - Moberg Pharma AB (publ) announces today that the company has entered into a convertible note agreement with Nice & Green S.A. (“N&G”), contingent on an authorization at an Extraordinary General Meeting. In December 2019, the company reported that the primary endpoint for MOB-015 was met in the North American phase 3 study. The evaluation of the study results showed that the rapid and high antifungal effect of MOB-015 is world leading, but that dosing may be optimized. Based on these data, MOB-015 has the potential to become the future market leader in onychomycosis. The agreement with N&G enables Moberg Pharma to pursue this potential and conduct an additional clinical study, depending on the outcome of the EU study expected at the end of Q2 2020.

The financing is provided by N&G, a Swiss specialty investor focusing on financing solutions for public biotech and cleantech growth companies. According to the financing agreement, N&G has committed to subscribe for convertible notes (CN) with a nominal value of up to SEK 216 million, in tranches of initially SEK 3 million per month for the first six months and thereafter, depending on market conditions, with possibility to increase to SEK 6 million per month. Each tranche is subscribed at 96.28 percent of the CNs’ nominal value. 75% of the amount will be paid in US dollar and the remaining 25% in Swedish kronor. Moberg Pharma has committed to draw the first two tranches and can then decide if and when the remaining tranches will be drawn. The company’s commitment is contingent on an Extraordinary General Meeting of Moberg Pharma authorizing the Board of Directors to decide to issue CNs pursuant the agreement. The company retains flexibility to use other forms of financing.

“This financing can cover the company’s capital requirements to product registration following a positive outcome in the European phase 3 study. It can also secure financing for an additional study if needed before registration. We are continuing our focus on MOB-015 and look forward to the topline data from the EU study at the end of the second quarter. We are fully committed to creating the future market leader in nail fungus treatments,” says Anna Ljung, CEO of Moberg Pharma.

The CNs will have a maturity of twelve months, zero interest rate and will be unsecured and non-transferable. The CNs can be converted to shares at a 7 percent discount in relation to the shares’ market price at the time of N&G’s conversion request. Moberg Pharma has the option to instead redeem the CNs in cash for a 3 percent fee of the nominal amount. New shares issued upon conversion will have the same rights as other ordinary shares and will be admitted to trading on Nasdaq Stockholm under the ticker symbol MOB.

The agreement with N&G also contains a profit sharing program, consisting of cash compensation to Moberg Pharma in the form of a percentage of the realized net capital gain on N&G’s sale of shares issued after conversion of the CNs, which reduces Moberg Pharma’s total cost for the financing.

“The agreement provides Moberg Pharma access to flexible financing at a reasonable cost under current market conditions. As part of the agreement, Nice & Green will introduce Moberg Pharma to its wide network of biotech investors in Switzerland, Germany and France,” says Mark Beveridge, VP Finance at Moberg Pharma.

To facilitate the financing agreement, the company’s largest shareholder, Östersjöstiftelsen, has entered into an agreement to lend N&G shares in Moberg Pharma. The share loan is collateralized by the CNs and by assets in Moberg Pharma. Moberg Pharma will pay a market-aligned fee to Östersjöstiftelsen for providing the share loan.

For additional information, please contact:
Anna Ljung, CEO, Phone: + 46 70 766 60 30, email: anna.ljung@mobergpharma.se
Mark Beveridge, VP Finance, Phone: + 46 76 805 82 88, email: mark.beveridge@mobergpharma.se