Herantis Pharma Plc
Company release, inside information, 6 February 2025 at 20:30 (EET)

Inside information: Herantis Pharma Plc successfully completes a directed share issue raising EUR 5.2 million

Herantis Pharma Plc ("Herantis" or the "Company"), a company developing disease-modifying therapies for Parkinson's disease, has carried out an offering of new shares (the "New Shares") in a directed share issue to institutional and other qualified investors (the "Directed Issue"). Herantis raises gross proceeds of EUR 5.2 million in the Directed Issue.

The Company issues a total of 3,934,084 New Shares in the Directed Issue, representing approximately 19.51 per cent of all issued shares prior to the Directed Issue and approximately 16.33 per cent of all issued shares following the Directed Issue. The total number of issued shares in the Company after the Directed Issue will be 24,094,817.

The subscription price is EUR 1.32 per New Share, corresponding to a discount of approximately 12 per cent to the closing price on Nasdaq First North Growth Market Finland on 6 February 2025. The subscription price shall be recorded in the invested unrestricted equity reserve.

The CEO of Herantis, Antti Vuolanto, comments: "Thanks to this fundraising, we will be in a strong position when the topline data of the HER-096 phase 1b trial are released, which is expected in the third quarter of this year. We also continue the partnership discussions and preparations for the phase 2 trial. We thank our existing shareholders, who participated in this private placement, for their continued support in the development of HER-096 as a promising disease-modifying drug candidate for Parkinson’s disease, and we are happy to welcome new investors as the company's shareholders."

The Directed Issue was based on the authorization given to the board of directors by the Company’s annual general meeting of 24 April 2024.

Most of the New Shares (ISIN code FI4000087861) will be registered with the trade register on or about 10 February 2025 and they are expected to be ready for delivery to the investors through Euroclear Finland Ltd on or about 10 February 2025. The remainder of the New Shares are expected to be registered later in February 2025.

Herantis intends to make applications for the admission to trading of the New Shares on Nasdaq First North Growth Market Finland. Trading in most of the New Shares is expected to commence on Nasdaq First North Growth Market Finland on or about 11 February 2025 with the remaining New Shares to be listed shortly thereafter, subject to the respective listing applications being approved.

Herantis intends to use the net proceeds from the Directed Issue for preparation of the Phase 2 clinical trial of HER-096, advancing partnering negotiations, and general corporate purposes. In preparing the Directed Issue, the Board of Directors has assessed several different financing options in addition to which their feasibility has been assessed on several occasions by the management of the Company. After careful consideration, the Board of Directors has determined that raising the funds by way of Directed Issue in derogation of the shareholders' pre-emptive rights is a better alternative for the Company's shareholders than a rights issue.

The Company needs additional funding within a timeframe in which it is not possible to execute a rights issue. A rights issue would entail a significantly longer execution time and thereby increased market exposure and a higher potential risk of affecting the share price negatively, particularly in a volatile and challenging market, compared to Directed Issue. The cost of carrying out the Directed Issue is deemed to be lower than in a rights issue where, among other things, there would be a risk that a rights issue would not be fully subscribed and significant underwriting commitments from an underwriting syndicate would possibly have to be procured.

Further, the Board of Directors has a positive view on an increased shareholding in the Company among institutional investors and other qualified investors because of their nature as long-term investors, who are able to offer substantial capital investments cost-efficiently. Consequently, and taking into account the Company's plan to use the funds raised for development of HER-096, when comparing a potential rights issue and the Directed Issue and their respective implications on execution cost and timeline, the Directed Issue allows the Company to obtain financing on terms and in a timetable that will be more beneficial than terms that would otherwise be available. Taking into account the above-mentioned matters, weighty financial reasons exist for derogating from the shareholders' pre-emptive rights, considered as a whole.

The subscription price of the New Shares has been determined based on the investor meetings arranged by the company's management together with the financial advisor, UB Corporate Finance Ltd and the licensed placement agent, UB Asset Management Ltd, and on negotiations regarding the subscription commitments. The determination of subscription price on market terms has been verified by the lead manager having sought to gather indications of interest to subscribe from a number of institutional investors in addition to which negotiations on subscription commitments have been concluded by independent parties.

The silent period preceding the Company's financial statements release commenced on 6 February 2025, meaning that the Directed Issue has been resolved upon and is executed during the silent period. The board of directors has assessed that executing the Directed Issue during the silent period is more beneficial for the Company than waiting until the silent period ends on 6 March 2025, as delaying the Directed Issue would have exposed the fundraising to changes in market conditions and therefore it is reasoned to deviate from the Company's disclosure policy and its requirement on silent period in order to facilitate investor discussions and the Directed Issue. No persons discharging managerial responsibilities within the Company or their closely associated persons participated in the Directed Issue and no previously unpublished information were disclosed to investors during the investor discussions held in the context of the Directed Issue.

UB Corporate Finance Ltd acted as the financial advisor and UB Asset Management Ltd as the placement agent in the Directed Issue. Krogerus Attorneys Ltd is acting as the legal counsel to the Company.

Herantis Pharma Plc
The Board of Directors

For more information, please contact:

Tone Kvåle, CFO

Tel: +47 915 19576

Email: ir@herantis.com

Certified Advisor:

UB Corporate Finance Ltd

Tel.: +358 9 25 380 225

E-mail: ubcf@unitedbankers.fi

About Herantis Pharma Plc

Herantis Pharma Plc is a clinical-stage biotechnology company developing disease modifying therapies for Parkinson’s disease. Herantis’ lead product HER-096, is an advanced small synthetic chemical peptidomimetic molecule developed based on the active site of the CDNF protein. It combines the compelling mechanism of action of CDNF with the convenience of subcutaneous administration. The primary aim of the ongoing Phase 1b clinical trial is to show that repeated subcutaneous doses of HER-096 are safe and well-tolerated in patients with Parkinson’s disease. The Phase 1a clinical trial, completed in late 2023, demonstrated a good safety and tolerability profile, and efficient blood-brain barrier penetration of subcutaneously administered HER-096 in healthy volunteers.

The shares of Herantis are listed on the Nasdaq First North Growth Market Finland.

Company website: www.herantis.com