IRLAB publishes prospectus relating to the rights issue

The Rights Issue in short

• The Rights Issue of approximately SEK 145 million comprises up to 5,388,711 new shares of series A.
• The Company’s shareholders have pre-emptive rights to subscribe for new shares of series A in the Rights Issue, whereby eight (8) existing shares (irrespective of share class) will entitle to subscription for one (1) new share of series A.
• The subscription price in the Rights Issue is SEK 27 per share, which corresponds to proceeds of approximately SEK 145 million before the deduction of transaction costs, provided that the Rights Issue is fully subscribed.
• The record date for participation in the Rights Issue is today on 7 February 2020 and the subscription period runs from and including 11 February until and including 25 February 2020.
• The Rights Issue is 100 percent covered by subscription undertakings, guarantee commitments and declarations of intent to subscribe. Subscription undertakings have been issued by the Company’s larger shareholders, among them, Daniel Johnsson, FV Group, Ancoria, Handelsbanken Fonder, Fourth Swedish National Pension Fund, Third Swedish National Pension Fund and Second Swedish National Pension Fund, amounting to approximately 43 percent of the Rights Issue. Further, some of the Company’s larger shareholders as well as certain other shareholders have issued guarantee commitments and declarations of intent for, in total, approximately 57 percent of the Rights Issue.

Publication of the prospectus

The prospectus, which contains full terms relating to the Rights Issue as well as application forms to subscribe for shares without the exercise of subscription rights is available on IRLAB’s website, www.irlab.se, as well as on Carnegie’s website, www.carnegie.se. The prospectus is also available on the Swedish Financial Supervisory Authority’s website, www.fi.se. 

Terms of the Rights Issue
On 12 December 2019, the board of directors of IRLAB also resolved to carry out the Rights Issue. Through the Rights Issue, up to 5,388,711 new shares of series A will be issued, entailing an increase of the share capital with up to SEK 107,774. The subscription price in the Rights Issue is SEK 27 per share. Following the Rights Issue, the total number of shares in IRLAB will amount to up to 48,498,406 (whereof 48,418,630 shares of series A and 79,776 shares of series B), and the share capital will amount to up to SEK 969,968.

The record date for participation in the Rights Issue is today on 7 February 2020 and the subscription period for the Rights Issue runs between 11 – 25 February 2020.

Shareholders who are registered shareholders of the Company on the record date, 7 February 2020, have preferential right to subscribe for new shares of series A in proportion to the number of shares (irrespective of share class) held on the record date. Shareholders will receive one (1) subscription right for each share (irrespective of share class) held. Eight (8) subscription rights entitle to subscription for one (1) new share of Series A. Furthermore, investors are offered the opportunity to subscribe for shares of Series A without the exercise of subscription rights.

If not all shares are subscribed for by the exercise of subscription rights, the Board of Directors shall resolve on allotment of new shares subscribed for without the exercise of subscription rights. These shares shall be allocated; (i) firstly to those who have subscribed for shares by the exercise of subscription rights, regardless of whether they were shareholders on the record day or not, and in the event of oversubscription, in relation to the number of subscription rights each has exercised in order to subscribe for new shares, and to the extent this cannot be resolved, by drawing of lots; (ii) secondly, to others who have subscribed for shares without the exercise of subscription rights in relation to the amount subscribed for and, in the event of oversubscription, in relation to the number of new shares subscribed for in the respective subscription application form; and (iii) thirdly, to those who have entered into guarantee agreements in the capacity of guarantors, pro rata in relation to the amount of the respective guarantee commitment.

The Rights Issue entails a dilution effect of approximately 11 percent in relation to the number of shares in the Company after the Rights Issue. Shareholders who choose not to participate in the Rights Issue are able to compensate financially for this dilution by selling their subscription rights.

Subscription undertakings, guarantee commitments and declarations of intent to subscribe

The Rights Issue is 100 percent covered by subscription undertakings, guarantee commitments and declarations of intent to subscribe. Subscription undertakings have been issued by the Company’s larger shareholders, among them, Daniel Johnsson, FV Group, Ancoria, Handelsbanken Fonder, Fourth Swedish National Pension Fund, Third Swedish National Pension Fund and Second Swedish National Pension Fund, amounting to approximately 43 percent of the Rights Issue. Further, some of the Company’s larger shareholders and certain other shareholders have issued guarantee commitments of approximately 47 percent and declarations of intent for approximately 10 percent, corresponding to, in total, approximately 57 percent of the Rights Issue.

Timetable

The timetable below is preliminary and may be subject to change. Any changes will be publicly

announced through press release.

Advisors

Carnegie Investment Bank AB (publ) and Zonda Partners are acting as Financial Advisers, and Advokatfirman Vinge and MAQS Advokatbyrå act as legal advisors to IRLAB in connection with the Rights Issue.

For more information

Nicholas Waters, CEO                
Phone: +46 730 75 77 01                
E-mail: nicholas.waters@irlab.se

Viktor Siewertz, CFO
Phone: +46 727 10 70 70
E-mail: viktor.siewertz@irlab.se

About IRLAB

IRLAB is a Swedish research and development company that focuses on developing novel treatments in Parkinson’s disease. The company's most advanced candidates, mesdopetam (IRL790) and IRL752, both of which completed Phase IIa-studies, intends to treat some of the most difficult symptoms related to Parkinson's disease: involuntary movements (PD-LIDs), psychosis (PD-P) and symptoms linked to cognitive decline such as impaired balance and increased risk of falls (PD-Falls). Through the proprietary research platform, ISP (The Integrative Screening Process), IRLAB discovers and develops drug candidates for central nervous system (CNS) related disorders where large and growing medical need exist. In addition to the clinical candidates, the ISP platform has also generated several CNS programs that are now in preclinical phase. IRLAB's Certified Adviser on Nasdaq First North is FNCA Sweden AB, info@fnca.se, +46 (0)8528 00 399. More information on www.irlab.se.

Important information

Publication, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in the Company in any jurisdiction.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The information in this press release may not be announced, published, copied or distributed,

directly or indirectly, to the United States, United Kingdom, Australia, Canada, Japan or in any other jurisdiction where the announcement, publication or distribution of the information would not comply with applicable laws and regulations or would require prospectuses, registration or any other measures than those required by Swedish law.

This announcement is not and does not form a part of any offer or solicitation to acquire, subscribe, sell or in any other way trade with shares or other securities in IRLAB Therapeutics AB (publ). This document has not been approved by any regulatory authority, and the information does not constitute a prospectus. In any EEA Member State, this communication is only directed at qualified investors in that Member State within the meaning of the prospectus regulation (2017/1129).

Forward-looking statements

This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates, including with respect to prospects for pharmaceutical treatments and studies. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “shall”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Undue reliance should not be placed on the forward-looking statements in this press release. The information, opinions and forward-looking statements contained in this press release speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release.