Mundo: Cantargia announces the terms of its fully covered rights issue (2)

All shareholding members of the Company’s management team and board of directors, which jointly hold approximately 1.0 percent of the number of shares in the Company, have also committed to subscribe for their respective pro rata share of the Rights Issue, or alternatively subscribe for an amount corresponding to the proceeds of subscription rights sold. Total subscription undertakings from existing shareholders amount to approximately 28.8 percent of the Rights Issue. The majority of these shareholders have also undertaken to vote in favor of the Rights Issue at the extraordinary general meeting.

Swedbank Robur through the investment funds Folksam LO Sverige and Swedbank Robur Sverige which control 6.4 percent of the Company, have expressed their support for the Rights Issue and have declared their intention to subscribe for their respective pro-rata share of the Rights Issue.

Total subscription undertakings and intentions to subscribe from existing shareholders amount to approximately SEK 88.1 million, equivalent to approximately 35.2 percent of the Rights Issue.

The Joint Global Coordinators, Fjärde AP-fonden anda few external parties including three former shareholders of the Company have provided guarantee commitments subject to customary conditions, which in aggregate, amount to approximately SEK 162.4 million, corresponding to approximately 64.8 percent of the Rights Issue.

Hence, the Rights Issue is fully covered by subscription undertakings, guarantee commitments, and declaration of intention to participate.

For the Joint Global Coordinators’ guarantee undertakings, a guarantee commission of 5 percent of the guaranteed amount shall be paid as cash remuneration. No remuneration shall be paid for the subscription undertakings nor for Fjärde AP-fonden’s guarantee undertaking. A guarantee commission of 5 percent of the guaranteed amount shall be paid for the remaining guarantee undertakings. Neither the subscription undertakings nor the guarantee commitments are secured by bank guarantee, blocked funds, pledges or similar arrangements. Further information regarding the parties who have entered subscription undertakings and guaranteed commitments will be available in the prospectus that will be published before the start of the subscription period.

Indicative timetable for the Rights Issue

Extraordinary general meeting, 21 July 2022.

Publication of prospectus, 22 July 2022.

Last day of trading in the Company’s shares, including the right to participate in the Rights Issue, 21 July 2022.

First day of trading in the Company’s shares, excluding the right to participate in the Rights Issue, 22 July 2022.

Record date for the Rights Issue, 25 July 2022.

Trading in subscription rights, 27 July 2022 – 5 August 2022.

Subscription period, 27 July 2022 – 10 August 2022.

Trading in paid subscribed shares (BTAs), 27 July 2022 – 11 August 2022.

Prospectus

A prospectus will be made available before the subscription period commences on Cantargia’s website, www.cantargia.com, as well as on Carnegie Investment Bank AB’s (publ) website, www.carnegie.se.

Interim report

Due to the Rights Issue, the Company has resolved to postpone the announcement of the interim report for the second quarter 2022, from the originally planned date 18 August 2022, to 30 August 2022.

Advisers

In conjunction with the Rights Issue, the Company has engaged Barclays Bank Ireland PLC and Carnegie Investment Bank AB (publ) as Joint Global Coordinators and Bookrunners. Advokatfirman Vinge acts as legal counsel to the Company and Baker & McKenzie Advokatbyrå KB acts as legal counsel to the Joint Global Bookrunners.

For further information, please contact:

Göran Forsberg, CEO

Mobile: +46(0)46-275 62 60

-E-mail: goran.forsberg@cantargia.com

This is information that Cantargia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:30 CEST on 18 July 2022.

About Cantargia

Cantargia AB (publ), reg. no. 556791-6019, is a biotechnology company that develops antibody-based treatments for life-threatening diseases and has established a platform based on the protein IL1RAP, involved in a number of cancer forms and inflammatory diseases. The main project, the antibody nadunolimab, is being studied clinically in combination with chemotherapy or immune therapy with a primary focus on non-small cell lung cancer and pancreatic cancer. Positive interim data from the combination with chemotherapy indicate stronger efficacy than would be expected from chemotherapy alone. Cantargia’s second project, the antibody CAN10, addresses treatment of serious autoimmune/inflammatory diseases, with initial focus on systemic sclerosis and myocarditis.

Cantargia is listed on Nasdaq Stockholm (ticker: CANTA). More information about Cantargia is available at www.cantargia.com.

About nadunolimab (CAN04)

The antibody CAN04 binds strongly to its target IL1RAP and functions by inducing ADCC and blocking IL-1a and IL-1ß signaling. Thereby, CAN04 can counteract the contribution of the IL-1 system to the immune suppressive tumor microenvironment and development of resistance to chemotherapy. CAN04 is investigated in multiple ongoing clinical trials. In the phase I/IIa study CANFOUR, first line combination therapy is investigated with standard chemotherapies in patients with PDAC (gemcitabine/nab-paclitaxel) and patients with NSCLC (cisplatin/gemcitabine) (NCT03267316). Positive interim data for the combination therapies show durable responses in 73 patients with PDAC, resulting in median iPFS of 7.2 months and median survival of 12.7 months. Stronger efficacy was also observed in 30 NSCLC patients with median PFS of 6.8 months. A response rate of 53 percent was achieved, with even higher responses in non-squamous NSCLC patients previously treated with pembrolizumab. These results show stronger efficacy than expected from chemotherapy alone. CAN04 is investigated with chemotherapy also in the phase I study CAPAFOUR, with the FOLFIRINOX regimen for first line treatment of metastatic PDAC (NCT04990037), and in two further clinical studies, CESTAFOUR (NCT05116891) and TRIFOUR (NCT05181462), in additional forms of cancer, including biliary tract cancer, colorectal cancer and triple negative breast cancer. CAN04 is also evaluated with the immune checkpoint inhibitor pembrolizumab, with or without chemotherapy, in the phase I study CIRIFOUR (NCT04452214).

Important information

The information in this press release does not contain or constitute an offer to acquire, subscribe or otherwise trade with shares or other securities in Cantargia. No action has been taken and measures will not be taken to permit a public offering in any other jurisdictions besides Sweden.

This press release is not a prospectus according to the definition in Regulation (EU) 2017/2019 (the «Prospectus Regulation») and has not been approved by any regulatory authority in any jurisdiction. This press release neither identifies nor pretends to identify risks (direct or indirect) that can be connected to an investment in shares or other securities in Cantargia. A prospectus will be prepared in connection with the Rights Issue and be reviewed and approved by the Swedish Financial Supervisory Authority, which is the national competent authority in Sweden with regard to the Prospectus Regulation. In order for investors to fully understand the potential risks and benefits associated with a decision to participate in the Rights Issue, any investment decision should only be made based on the information in the prospectus. Thus, investors are encouraged to review the prospectus in its entirety.

(CONTINUA)