Directed issue 2019 and warrants

Disclaimer

Rights issue in Sprint Bioscience AB (publ)

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Sprint Bioscience carries out a directed issue of Units and issues free warrants to existing owners

The Board of Directors of Sprint Bioscience AB (publ) ("Sprint" or the "Company") has, with the support of the authorization from the Annual General Meeting on May 15, 2019, decided to carry out a directed new issue of Units of approximately SEK 10 million. The capital will be used to finance the continued development work and provide a stable basis for contract discussions. At the same time, free warrants (TO) will be issued to existing owners as a dilution protection. Through the directed issue, Sprint will receive SEK 10 million directly and, if fully subscribed, warrants can provide the company with an additional up to SEK 32.7 million until May 2020.

The directed issue consists of a total of 7150 Units. Each Unit consists of 100 shares of SEK 14 and 34 warrants of series 1 and 34 warrants of series 2. The warrants are issued free of charge and can provide Sprint with up to SEK 7.4 million (SEK 3.5 million from TO 1 and SEK 3.9 million from TO 2). The reasons for the deviation from the shareholders' preferential rights are to provide the Company with additional capital from strategic investors in a cost-effective manner to continue the development work and provide a stable basis for contract discussions. The subscription price per share corresponds to approximately 10% discount to the volume weighted average price (VWAP) over the last 14 trading days.

The issue of warrants to existing shareholders comprises a total of 830,540 TO 1 and 830,540 TO 2 issued to a wholly owned subsidiary of Sprint Bioscience, to be subsequently distributed to existing shareholders who will receive 1 warrant of each series for every 14 shares held on the record date. In total, the warrants to existing shareholders can provide Sprint with up to SEK 25.3 million (SEK 12 million from TO1 and SEK 13.3 million from TO 2)

- As we have previously communicated, there is a need for additional financing to give us a stable foundation in our contract negotiations and at the same time continue the research activities that build our long-term value. We are pleased that strategic investors who have shown a long-term interest in the company's work with the development and out-licensing of drug projects now want to invest in the company. At the same time, it is important for us that existing owners have the opportunity to defend their ownership and therefore we issue warrants in parallel, says Jessica Martinsson, CEO of Sprint Bioscience.

Terms and conditions of Series 1 warrants

Each Series 1 warrant entitles the holder to subscribe for one (1) share in Sprint during the exercise period February 14 - 28, 2020 at a price of SEK 14.5 per share.

Terms and conditions of Series 2 warrants

Each Series 2 warrant entitles the holder to subscribe for one (1) share in Sprint during the exercise period May 14 - 28, 2020 at a price corresponding to a 30% discount to the volume-weighted share price in Sprint during the period April 27, 2020 - May 8, 2020, however, a maximum of SEK 16.

Record date and conditions for receiving free warrants

The record date for receiving free warrants is expected to occur approximately one week after the warrants have been registered with the Swedish Companies Registration Office, which is expected to take place at the end of October 2019. Sprint will, after such registration, issue a press release on the final record date.

All shareholders will receive one (1) Series 1 warrant and one (1) Series 2 warrant for every fourteen (14) shares held on the record date. For those shareholders who do not hold an even number of 14 shares, one of the major shareholders in Sprint will waive warrants so that all other subscribers receive an even number of warrants.

The directed Unit Issue subscribed by a consortium led by Gerhard Dal and Råsunda Förvaltning will be registered after the warrants to be allocated to existing shareholders have been registered. This means that the investors who participated in the directed Unit Issue will not receive additional warrants through preferential rights.

Trading in warrants

Sprint intends to apply for listing of both TO 1 and TO 2 on Nasdaq First North.

All decisions to issue Units and warrants have been made by the Board of Directors with the support of authorization from the Annual General Meeting on May 15, 2019. The maximum dilution resulting from the decisions amounts to 24.7%.

Drawdown of overdraft facilities

To create additional financial preparedness, Sprint has also procured an overdraft facility that allows Sprint to borrow up to SEK 10 million on market terms, if necessary, during the period January - June 2020

Aqurat Fondkommission AB has acted as issuing agent and legal advisor was Fredersen Advokatbyrå AB.

For further information, please contact:
Jessica Martinsson, Managing Director, Sprint Bioscience
Tel: 08-411 44 55
E-mail: jessica.martinsson@sprintbioscience.com

www.sprintbioscience.com

This information is information that Sprint Bioscience 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 20.55 CET on October 3, 2019.

About Sprint Bioscience AB (publ)

Sprint Bioscience is part of the new Swedish pharmaceutical industry. The company aims to develop drug candidates for the global pharmaceutical market in the field of cancer in a more time and resource-efficient manner. The company is based in Stockholm with laboratories in Huddinge. The Sprint Bioscience share is listed on Nasdaq First North Premier Growth Market and trades under the ticker symbol SPRINT.
Further information is available on the company's website; www.sprintbioscience.com
Certified Advisor is FNCA Sweden AB; +46 (0)8 528 00 399, info@fnca.se, www.fnca.se

Sprint Bioscience │ Novum │141 57 Huddinge │ Sweden │ 46-(0)8-411 44 55 │ info@sprintbioscience.com