ChronTech Pharma carries out new issues of shares Background In July, ChronTech Pharma AB (“ChronTech”) announced a financing plan including three new issues of shares - one private placement and two rights issues. The first step of the financing plan was completed in July and included a private placement of 80 million shares at the subscription price of SEK 0.31 per share. ChronTech raised approx. SEK 25 million through the private placement excluding costs. The Board of Directors has resolved, based on the authorization by the AGM on March 30, 2011, to carry out the second and third steps of the financing plan as set out below. Rights issue of 22 Million shares The second step of the financing plan is a rights issue of not more than 22 million shares at the subscription price of SEK 0.20 per share. If the new issue is fully subscribed, it will provide ChronTech with SEK 4.4 million excluding costs. The 80 million shares that were issued in the private placement will not be entitled to participate in the new issue. The new issue will be carried out without the use of subscription rights in the Euroclear system. Instead, the shares shall be subscribed for on a subscription form which will be available on ChronTech's home page www.chrontech.se. ChronTech will not prepare a prospectus for the new issue. The new issue will be carried out in accordance with the following time plan. November 4, 2011 Record date for the rights issue November 9 - 23, 2011 Subscription period Rights issue of 46 million shares The third step of the plan is a rights issue of not more than 46,109,965 shares at the subscription price of SEK 0.31 per share. If the new issue is fully subscribed, it will provide ChronTech with SEK 14.3 million excluding costs. The 80 million shares that were issued in the private placement and the 22 million shares that will be issued in the first rights issue will not be entitled to participate in this new issue. The terms of the rights issue set out below have been in calculated in accordance herewith. Terms and conditions for the rights issue: · Number of shares Not more than 46,109,965 new shares · Subscription price SEK 0.31 per share · Preferential rights Every two existing shares (excluding the shares issued in the private placement and the first rights issue) entitle to subscription of one new share Preliminary time plan for the new issue: · First day of trading ex-rights November 29, 2011 · Record date December 1, 2011 · Announcement of prospectus On or about November 28, 2011 · Subscription period December 5 - 19, 2011 · Trading in subscription rights December 5 - 14, 2011 Issue of shares with payment by set-off The EGM on August 19, 2011 resolved to authorize the Board of Directors to resolve a new issue of shares of not more than 10,000,000 shares at a subscription price of (rounded) SEK 0,31 per share. Payment may be made by set-off. The purpose with the authorization is to enable ChronTech to convert a bridge financing loan of 500,000 USD to new shares on the same terms as in the private placement. The Board of Directors has now resolved to carry out a new issue of shares based on the authorization. In accordance with the authorization, the new issue will include 10,000,000 shares at a subscription price of (rounded) SEK 0.31 per share. Payment will be made by set-off of a loan to ChronTech in the amount of USD 500,000. Notice of EGM The Board of Directors has resolved to convene an EGM on November 25, 2011. The EGM will deal with the Board of Directors proposal to amend the Articles of Association in respect of the minimum and maximum amount of the share capital and the minimum and maximum number of issued and outstanding shares. The Board of Directors' proposal means that the share capital shall amount to not less than SEK 5,100,000 and not more than SEK 20,400,000. The number of issued and outstanding shares shall be not less than 170 million and not more than 680 million. ChronTech's share capital The share capital of ChronTech will, following registration of the 10,000,000 shares referred to above, amount to SEK 5,166,597.90, divided into 172,219,930 shares. If both of the new issues referred to above are fully subscribed the share capital will amount to SEK 7,209,896.85, divided into 240,329,895 shares. For more information, please contact: Anders Vahlne, CEO and Head of Research, ChronTech Pharma AB Tel: +46 8 5858 1313, mobile phone: +46 709 28 05 28, E-mail: anders.vahlne@ki.se (anders.vahlne@ki.se) About ChronTech ChronTech develops the therapeutic DNA vaccines ChronVac-C® and ChronVac-B drugs against chronic hepatitis C virus and hepatitis B virus infections, i.e. chronic infections with jaundice causing viruses which can lead to liver cirrhosis and liver cancer. ChronTech has also developed and further develops a patent pending new type of injection needle for a more effective uptake of DNA vaccines. ChronTech also have part ownership in the wound healing therapy ChronSeal®, and in the new platform technology RAS®. The ChronTech share is admitted to trade on First North. Remium AB is Certified Adviser for ChronTech. For more information, please visit: www.chrontech.se (http://www.chrontech.se/) In the event of any discrepancy between the Swedish and English versions of this press release, the Swedish version will take precedence.
ChronTech Pharma carries out new issues of shares
| Source: Fastilium Property Group AB
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