AlzeCure carries out a set-off issue in connection with ACD440 entering phase II and Acturum Life investing in the company

AlzeCure Pharma AB (publ) (FN STO: ALZCUR), a pharmaceutical company that develops a broad portfolio of small molecule candidate drugs for diseases affecting the central nervous system, with projects in both Alzheimer’s disease and pain, announces today that the company is carrying out a set-off issue of 845,070 shares to Acturum Life AB as a result of a previously agreed milestone payment, which will be made in the form of shares instead of cash payment.

In connection with ACD440, a drug candidate focused on the treatment of peripheral neuropathic pain, soon will initiate its planned phase IIa study, AlzeCure Pharma will, in accordance with previous agreements, pay a milestone payment to the previous owner Acturum Life AB. According to a new supplementary agreement between the parties, Acturum Life will receive shares in AlzeCure Pharma instead of cash payment and this will take the form of a set-off issue.

"The set-off issue strengthens the company's liquidity and we are pleased that Acturum Life chooses to show its confidence in AlzeCure in this way and actively support the continued clinical development of ACD440", says Martin Jönsson, CEO of AlzeCure Pharma AB.

"In this way, we choose to invest in promising development work at AlzeCure", says Peter Sjöstrand, chairman of Acturum Life AB.

ACD440, a TRPV1 antagonist and AlzeCure's drug candidate for neuropathic pain within the company's Painless platform, has in a previous phase Ib study shown positive proof-of-mechanism data, ie shown analgesic effect in humans. It was also well tolerated as a topical gel on the skin, indicating good suitability for further clinical development as a local treatment for neuropathic pain conditions.

The transaction in brief
A set-off issue, in accordance with the present decision, is, in the Board's assessment, beneficial for the company and its shareholders as a long-term strengthening of the company's financial position takes place. All in all, the issue would contribute to creating value for all the company's shareholders.

The issue price is SEK 3.55, which is based on the volume-weighted average price during the period March 23 to April 5, the last 10 trading days before the decision. This will mean a dilution of 1.7 percent. The number of shares increases by 845,070 shares, corresponding to an increase in the share capital by SEK 21,126.75. The total number of shares after the issue will be 50,733,365 shares and the share capital will amount to SEK 1 268 334.125 after registration with the Swedish Companies Registration Office. Acturum Life AB has the right to subscribe. Subscription of the newly issued shares shall take place within five days of the Board's decision.

Background and use of net cash
It is the Board's assessment that a set-off issue that strengthens the company's cash flow and financial position enables related investments that the company has identified. AlzeCure's projects are in an active development phase and it is a good opportunity to strengthen the Company's financial position. The capital provided will be used for previously communicated and planned studies, including the upcoming phase II study with ACD440.

Advisor
Erik Penser Bank AB is the issuing institution and Synch Advokat AB is the legal advisor to AlzeCure in connection with this issue.