Comment from the CEO

"We welcome strategic and long-term investors who share our vision. The directed share issue strengthens our financial position and enables us to accelerate the commercialization of our neurosurgical product offerings, while maintaining focus on sustainable growth. With this support, we are well positioned to execute on our strategy and drive CLS further towards profitability." comments Dan Mogren, CEO, CLS

Purpose and Use of Proceeds

CLS has made significant progress in recent years and, through its strategic collaboration with ClearPoint Neuro in neurosurgery, has strengthened its market position. In October 2024, CLS announced a new business model where the focus shifts to the most profitable business segments and an expanded partner model. As a result, operating costs are expected to decrease by at least 30% in 2025, while gross margins are expected to increase to at least 60% by 2026.

Through the Directed Share Issue, the Company broadens and strengthens its shareholder base with reputable and long-term investors who can support the Company's continued growth. The proceeds from the Directed Share Issue will be used to support the Company's commercialization efforts, with a focus on entering into a strategic partnership in neurosurgery. The funds will be allocated to:

• Ensuring the company's necessary operational capacity
• Improvement of product range and obtaining market approvals
• Supply chain reinforcement and quality assurance

Reasons for Deviating from Shareholders' Preferential Rights

The Board has considered the possibility of raising the necessary capital through a rights issue and has concluded that there are several reasons why it is currently more advantageous for the Company and its shareholders to raise capital through a directed new share issue compared to a rights issue. A rights issue would take significantly longer to complete and pose a higher risk of a negative impact on the share price, especially in light of the current volatile and challenging market conditions. Conducting a directed new share issue can be done at a lower issuance cost and with less complexity than a rights issue. Furthermore, the Board believes that a directed new share issue provides an opportunity to further diversify and strengthen the Company's shareholder base with qualified investors to increase liquidity in the Company's shares. The Board's assessment, given the current market environment, is therefore that an issue deviating from the shareholders' preferential rights, with the flexibility it entails, is the most appropriate option as it allows the Company to raise capital in a time- and cost-effective manner and on favourable terms for the Company's continued development.

The Issue

The Board of CLS has today resolved to carry out a directed issue of 5,500,000 Units, consisting of shares of series B and warrants of series TO 8B at a subscription price of SEK 2.90 per Unit, corresponding to SEK 2.90 per new B-share. Through the Issue, CLS will initially raise approximately SEK 16 million before transaction costs.

Each (1) Unit comprises one (1) share of series B and one (1) warrant of series TO 8B. The warrants of series TO 8B are issued free of charge and entitle holders to subscribe for one (1) additional B-share per warrant during the period September 15 - September 27, 2025, at an exercise price of SEK 3.80 per new B-share.

If fully exercised, the warrants will provide CLS with an additional approximately SEK 21 million, increasing the total capital raised through the Issue to approximately SEK 37 million before transaction costs.

The Issue, which has been carried out through a so-called bookbuilding procedure, was resolved based on the authorisation from the Annual General Meeting on June 28, 2024. The Issue is directed at qualified investors. Among existing shareholders, Khattar Holdings and Niklas Estensson. The Company has allowed three investors with a total participation in the Issue of SEK 950,000 an extended period of time to provide their payments, this has been done to enable their participation. The Company deems this necessary as their participation has been a prerequisite for carrying out the Issue.

The subscription price represents a discount of approximately 17.8 % against the 10-day volume weighted average price of the Company's B-shares on the Nasdaq First North Growth Market until and including February 26, 2025. The subscription price was determined through extensive arm's length negotiations between the subscribers and the Company's financial advisor. Against this background, the Board's assessment is that the subscription price reflects prevailing demand and market conditions and is therefore considered to be market-based.

The Issue will initially increase the number of shares in CLS from 20,166,594 to 25,666,594 consisting of 3,000 A-shares and 25,663,594 B-shares. The Company's share capital will increase from approximately 46,576,365.843 SEK to approximately 59,279,056.845 SEK. The Issue results in a dilution of approximately 21.4 percent of the number of shares and votes in CLS. Assuming full redemption of the warrants of series TO 8B, the number of shares in CLS will subsequently increase from 25,666,594 to 31,166,594 consisting of 3,000 A-shares and 31,163,594 B-shares. The Company's share capital will increase from approximately 59,279,056.845 SEK to approximately 71,981,747.846 SEK. The redemption of warrants, assuming full redemption, would result in an additional dilution of approximately 17.6 percent of the number of shares and votes in CLS.

Advisors

Redeye AB is financial adviser and Foyen Advokatfirma is legal adviser to CLS in connection with the Issue. Nordic Issuing is issuer agent.

Important Information

The publication, announcement, or distribution of this press release may be subject to restrictions in certain jurisdictions. Recipients of this press release in jurisdictions where this press release has been published or distributed should inform themselves of and comply with such restrictions. Recipients of this press release are responsible for using this press release and the information herein in accordance with applicable legislation in each jurisdiction. This press release does not constitute an offer, or invitation to acquire or subscribe for any securities in the Company in any jurisdiction, neither from the Company, Redeye, nor anyone else.

This press release does not identify or purport to identify risks (direct or indirect) that may be attributed to an investment in the new shares. Any investment decision in connection with the Issue must be made based on all publicly available information regarding the Company and the Company's shares. Such information has not been independently verified by Redeye. The information in this press release is only provided as background material and does not claim to be complete. An investor should not rely solely on the information in this press release or its accuracy or completeness. Redeye is acting for the Company in connection with the transaction and not for anyone else. Redeye is not responsible to anyone other than the Company for providing the protections afforded to their clients or for giving advice in relation to the transaction or any other matter referred to herein.

This press release does not constitute a recommendation for any investors' decisions regarding the Issue. Each investor or potential investor should conduct their own investigation, analysis, and evaluation of the business and the information described in this press release and all publicly available information. The price and value of securities can decrease as well as increase. Achieved results do not constitute guidance for future results.

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 offered or sold in the United States without being registered or exempted from (or in a transaction not subject to) registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and applicable state laws, or to any person who is not a qualified institutional buyer (as defined in the U.S. Investment Company Act of 1940 (the "Investment Company Act")). The securities referred to herein may not be sold under circumstances that would require the Company to register under the Investment Company 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. Furthermore, the Company has not been and will not be registered under the Investment Company Act. The information in this press release may not be announced, published, copied, or distributed, directly or indirectly, wholly or partly, in or to the United States, Australia, Hong Kong, Japan, Canada, New Zealand, Switzerland, Singapore, South Africa, Russia, Belarus, or any other jurisdiction where the announcement, publication, or distribution of the information would not comply with applicable laws and regulations or would require a prospectus, registration, or other measures than those required by Swedish law. Actions contrary to this instruction may constitute a violation of applicable securities laws.

This press release does not constitute a prospectus within the meaning of Regulation (EU) 2017/1129, (the "Prospectus Regulation") and has not been approved by any regulatory authority in any jurisdiction. The Company has not approved any offer to the public of shares or rights in any member state ("Member State") of the European Economic Area ("EEA") and no prospectus has been prepared or will be prepared in connection with the Issue. In each EEA Member State, this announcement is directed only at "qualified investors" in that Member State as defined in the Prospectus Regulation.

In the United Kingdom, this press release and any other material related to the securities described herein are only distributed and directed to, and any investment or investment activity to which this document relates is available only to: (i) persons with professional experience in matters related to investments falling within the definition of "investment professionals" in Article 19.5 of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) persons falling within Article 43 of the Order or high net worth entities falling within Article 49.2 (a)-(d) of the Order, or to other persons to whom it may otherwise lawfully be communicated in accordance with an exemption from Article 21.1 of the UK Financial Services and Markets Act 2000 or otherwise under circumstances where it does not apply (all such persons together being referred to as "relevant persons"). In the United Kingdom, any investment or investment activity to which this press release relates is only available to, and will only involve, relevant persons. Persons who are not relevant persons should not take any action based on this press release and should not act or rely on it. This press release is not a prospectus under the meaning of Regulation (EU) 2017/1129 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 (the "UK Prospectus Regulation").

Forward-looking Statements

This press release contains forward-looking statements that reflect the Company's intentions, assessments, or current expectations about and goals for the Company's future operations, financial situation, development, liquidity, results, prospects, expected growth, strategies, and opportunities, as well as markets in which the Company operates. Forward-looking statements are statements that are not historical facts and that can be identified by terms such as "believe," "expect," "anticipate," "intend," "may," "plan," "estimate," "should," "could," "aim," or "might" or, in each case, their negative, or similar, expressions. The forward-looking statements in this press release are based on various assumptions, many of which are in turn based on further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it cannot give any assurances that they will occur or prove to be correct. As these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcomes could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, unexpected events, and other important factors could cause actual events to differ materially from the expectations expressed or implied herein 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 and accepts no 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. Readers of this press release should not unduly rely on the forward-looking statements in this press release. The information, opinions, and forward-looking statements included in this press release are provided only as of the date of this press release and may be subject to change without notice. Neither the Company nor anyone else undertakes any obligation to review, update, confirm, or announce 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.

For more information, please contact:


Dan J Mogren, CEO, Clinical Laserthermia Systems AB (publ)

Phone: +46 (0) 70-590 11 40

E-mail: dan.mogren@clinicallaser.com

About CLS

Clinical Laserthermia Systems AB (publ), develops and sells TRANBERG® Thermal Therapy System and ClearPoint Prism® Neuro Laser Therapy System with sterile disposables, for minimally invasive treatment of cancer tumors and drug-resistant epilepsy. The products are marketed and sold through partners for image-guided laser ablation and are used in studies for treatment with imILT®, the company's interstitial laser thermotherapy for immune stimulating ablation with potential abscopal treatment effect. CLS is headquartered in Lund, Sweden, with subsidiaries in Germany, the United States and a marketing company in Singapore. CLS is listed on Nasdaq First North Growth Market under the symbol CLS B. Certified adviser (CA) is FNCA Sweden AB.

For more information about CLS, please visit the Company's website: www.clinicallaser.se