Cyxone intends to carry out a directed issue of units

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Cyxone AB (publ) (”Cyxone” or the ”Company”) today announces its intention to carry out a directed issue of units of approximately SEK 19 million, consisting of one (1) share and one (1) warrant of series TO4. The directed issue will be carried out through an accelerated book-building procedure, which commences after the publication of this press release. The Company will also, if the directed issue is completed, decide on and issue of warrants of series TO4 that will be allotted to current shareholders.

Cyxone intends to, with deviation from the shareholders’ preferential rights and with authorization from the annual general meeting held on June 4, 2020, implement a directed unit issue of approximately SEK 19 million (the “Directed Issue”). One unit consists of one (1) share and one (1) warrant of series TO4. Cyxone has engaged Mangold Fondkommission AB to investigate the conditions for the Directed Issue through a so-called accelerated book-building procedure.

The rationale for carrying out the Directed Issue and for the deviation from the shareholders’ preferential rights is to secure financing in a time- and cost-effective manner, and to widen the shareholder base. The Company intends to use the proceeds from the Directed Issue to conduct and complete the Company’s planned phase II study of Rabeximod in patients with Covid-19. Furthermore, According to the board of directors, the Directed Issue can provide Cyxone with necessary capital to enable research and development of an easier mode of administration for T20K.

The subscription price, and the number of units, in the Directed issue are to be determined by the accelerated book-building procedure. The board of directors’ assessment is that the subscription price in the Directed Issue will be in accordance with market conditions since it will be determined through an accelerated book-building procedure.

If the Directed Issue is completed, the board of directors of Cyxone intends to decide on the issuing of warrants of series TO4 (same series as in the Directed Issue) which will be allotted to current shareholders in the Company. The warrants of series TO4 are intended to be admitted to trading on Nasdaq First North Growth Market.

The book-building procedure will begin no earlier than after the publication of this press release. Thereafter, the board of directors in the Company will decide on the Directed Issue and the allotment of units before the opening of Nasdaq First North Growth Market on November 11, 2020. Payment for units in the Directed Issue will be paid in cash.

The Directed Issue is subject to a resolution by the board of directors of Cyxone and can be cancelled at any time or be implemented with other terms than what is described above.

Mangold Fondkommission AB is acting as sole bookrunner and financial adviser, and Fredersen Advokatbyrå AB is legal adviser in connection with the Directed Issue.

This is a translation of the original Swedish version of the press release. In case of any discrepancy between this translation and the Swedish original, the latter shall prevail.

Tara Heitner, CEO
Tel: +46 70 781 88 08
Email: tara.heitner@cyxone.com
Adelgatan 21
211 22 Malmö, Sweden

This contains such information that Cyxone AB is required to make public under the EU’s Market Abuse Regulation. The information was provided under the auspices of the above contact person for publication on 10 November 2020 at 19.00 CET.

Mangold Fondkommission AB                  
Telephone: +46 (0)8 503 015 50
E-mail: ca@mangold.se

Cyxone AB (publ) (Nasdaq First North Growth Market: CYXO) develops disease modifying therapies for diseases such as rheumatoid arthritis and multiple sclerosis as well as treatments for virally induced acute respiratory disorders. Rabeximod is a Phase 2 candidate drug being evaluated for the management of rheumatoid arthritis and moderate Covid-19 infections. T20K is a Phase 1 candidate drug for treatment of multiple sclerosis. Certified Adviser is Mangold Fondkommission AB, +46 (0)8 503 015 50, ca@mangold.se. For more information, please visit www.cyxone.com

The release, 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. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in CYxone in any jurisdiction, neither from Cyxone nor from someone else.

This announcement does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the Cyxone. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. Mangold Fondkommission AB is acting for Cyxone in connection with the Directed Issue and no one else and will not be responsible to anyone other than Cyxone for providing the protections afforded to its clients nor for giving advice in relation to the Directed Share Issue or any other matter referred to herein.

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 securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into the United States, Australia, Canada, New Zealand, Hong Kong, Japan, Singapore, South Africa, South Korea or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Cyxone has not authorized any offer to the public of shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the Directed Issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.