Hansa Medical proposes a directed share issue


· The board of directors of Hansa Medical AB (publ) (“Hansa Medical” or the
“Company”) proposes a directed share issue of approximately SEK 185 million.

  · The subscription price for the issue is proposed to be SEK 70 per share.

  · The issue is directed to selected international specialist investors
including HBM Healthcare Investments, Sectoral Asset Management, Sphera Funds
Management and Aescap, as well as Swedish institutional and strategic investors
including Carnegie Asset Management,
AFA Insurance, KK-stiftelsen, Thomas Olausson and Unionen.

  · Shareholders representing approximately 45 per cent of the shares and votes
of Hansa Medical have undertaken to vote in favour of the issue at the
extraordinary general meeting.

  · The board of directors has today announced a notice for an extraordinary
general meeting to resolve on the share issue (for full details, see separate
press release with notice for an extraordinary meeting).
NOT FOR DISTRIBUTION OR PUBLIC RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE
UNITED STATES, CANADA, AUSTRALIA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH
MEASURES WOULD BE IN VIOLATION OF APPLICABLE REGULATIONS. THIS PRESS RELEASE
DOES NOT CONSTITUTE AN OFFER, OR A SOLICITATION OF ANY OFFER, TO BUY OR
SUBSCRIBE FOR ANY SECURITIES IN HANSA MEDICAL IN ANY JURISDICTION.

Background and reasons
In order to secure continued value creation for the Company of its projects, the
board of directors proposes a directed issue of new shares. The issue proceeds
will primarily be invested in the development of the drug candidate IdeS up to
an application for market authorization of IdeS in kidney transplantation. The
issue also enables the Company to secure a broadened investor base with an
increase in international and Swedish institutional investors, which supplements
the Company’s current strong shareholder base. All in all, the issue enables
Hansa Medical to continue to grow into a pharmaceutical company with proprietary
products on the market.

“The proposed directed issue is expected to secure the funds necessary to
develop our lead candidate IdeS up to the filing for marketing authorization of
IdeS in treatment of kidney transplantation”, says Göran Arvidson, CEO of Hansa
Medical.

“Our cash position, including existing cash and cash equivalents, will also
allow us to investigate the safety and efficacy of IdeS through several Phase II
clinical trials in a number of prioritized indications. These include the
serious autoimmune diseases thrombotic thrombocytopenic purpura (TTP), anti-GBM
disease and Guillain-Barré syndrome (GBS), as well as the transplant indications
antibody-mediated rejection (AMR) post kidney transplantation and blood group
incompatible (ABOi) kidney transplantation. Our long term vision is to establish
IdeS as a therapy for rapid and effective antibody inactivation in a wide range
of diseases with significant unmet medical need.”

The issue
The board of directors has resolved to propose the extraordinary general meeting
to resolve on a directed share issue of not more than 2,642,857 shares. The
subscription price for the issue corresponds to SEK 70 per share, which, in
total, will provide the Company with approximately SEK 185 million before issue
costs. The subscription price for the issue has been determined through a so
-called private placement procedure. The directed issue will be fully subscribed
by a number of selected international specialist investors including HBM
Healthcare Investments, Sectoral Asset Management, Sphera Funds Management and
Aescap, as well as Swedish institutional and strategic investors including
Carnegie Asset Management, AFA Insurance, KK-stiftelsen, Thomas Olausson and
Unionen, in accordance with separate agreements.
Shareholders representing approximately 45 per cent of the shares and votes in
Hansa Medical, including Nexttobe AB, Gladiator and Farstorps Gård AB, have
undertaken to vote in favour of the issue at the extraordinary general meeting.

The reasons for the deviation from the shareholders’ pre-emption rights are that
the Company shall, in a timely manner, be able to secure the Company’s capital
need for the operations, as well as to broaden the ownership structure of the
Company with strategic and institutional investors, which is also supported by
the Company’s largest shareholders, who are not participating in the issue.
Through the issue, the share capital will increase with SEK 2,642,857 to SEK
35,054,860, which entails a dilution effect of approximately 8 per cent of both
the number of shares and votes.

The extraordinary general meeting will be held on 21 November 2016 at the
Company’s offices on Scheelevägen 22 in Lund.

Advisors
Hansa Medical has, in connection with the transaction, engaged Zonda Partners as
advisor, Carnegie Investment Bank as financial advisor and Advokatfirman Vinge
as legal advisor.
For further information, please contact:
Hansa Medical AB
Göran Arvidson, CEO
Mobile: 46 70-633 30 42
E-mail: goran.arvidson@hansamedical.com
www.hansamedical.com
This information is such information that Hansa Medical AB (publ) 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 8:30 am CEST on 20 October 2016.

_____________________________________________

Important information

The release, announcement or distribution of this press release may, in certain
jurisdictions, be subject to restrictions. The recipient of this press release
is responsible for using the information in this press release in accordance
with applicable law 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 Hansa Medical in any jurisdiction.

This press release is not a prospectus for the purposes of Directive 2003/71/EC
as amended through Directive 2010/73/EU. Hansa Medical has not authorized any
offer to the public of shares or rights in any member state of the EEA and no
prospectus or other offering document has been or will be prepared in connection
with the directed share issue.
About IdeS
IdeS, a unique molecule with a novel mechanism, is an enzyme that specifically
cleaves human IgG antibodies. IdeS has been evaluated in a Phase I study in
healthy subjects and in a Phase II study in sensitized patients awaiting kidney
transplantation demonstrating that IdeS is highly effective in reducing anti-HLA
antibodies to levels acceptable for transplantation with a favorable safety
profile. The efficacy and safety of IdeS in transplantation are currently
investigated in three on-going Phase II studies in sensitized kidney patients in
Sweden and the US. In addition to transplantation, IdeS has potential
applications in a variety of rare autoimmune diseases and currently, the
efficacy and safety of IdeS is investigated in a Phase II study in acquired
Thrombotic Thrombocytopenic Purpura.

About Hansa Medical AB (publ)
Hansa Medical is a biopharmaceutical company focusing on novel immunomodulatory
enzymes. The lead project IdeS is an antibody-degrading enzyme in clinical
development, with potential use in transplantation, rare autoimmune diseases and
oncology. Additional projects focus on development of new antibody modulating
enzymes, as well as HBP, a diagnostic biomarker for prediction of severe sepsis
at emergency departments that is already introduced on the market. The company
is based in Lund, Sweden. Hansa Medical’s share (ticker: HMED) is listed on
Nasdaq Stockholm.

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