LIDDS secures financing of up to 40.8 MSEK to create foundation for new partnerships based on the NanoZolid® technology

UPPSALA, SWEDEN – LIDDS AB (publ) announced today that the company has entered into a convertible note agreement with Nice & Green (“N&G”), a Swiss specialty investor with significant experience from the life science industry. N&G has committed to subscribe for convertible notes with a nominal value of up to 40.8 MSEK. LIDDS has the option, but not the obligation, to use the agreed financing during the next 18 months, bringing flexibility to the company and creating foundation for new partnerships based on the NanoZolid^® technology.

According to the agreement, N&G has committed to subscribe for convertible notes with a total nominal value of 40.8 MSEK, in tranches of 10.2 MSEK each. Each tranche is subscribed for at nominal value. LIDDS has the option, but not the obligation, to draw tranches quarterly, up to maximum four tranches. In connection with the first draw down, LIDDS shall procure that a share loan corresponding to at least 60 percent of one tranche is provided to N&G. The convertible notes have a maturity of twelve months, carries zero interest and can be converted to shares at a 7 percent discount in relation to the shares’ market price at the time of N&G’s conversion request. LIDDS has at the time of a conversion request the option to instead redeem the convertible notes in cash for a 3 percent fee of the nominal amount. Proceeds drawn by LIDDS under the convertible notes agreement will be used to further advance the project in clinical development, creating a solid foundation for new partnerships and license agreements based on the NanoZolid^®technology.

“This financing agreement provides LIDDS with important flexibility supporting fast progress of important project development steps in the company”, said Nina Herne CEO of LIDDS. “N&G is a dedicated investor, with a long-term commitment and a strong net-work of international institutional investors and family offices which is beneficial for LIDDS”, she continued.

LIDDS’ financing strategy is primarily to secure partnerships and licensing agreements based on the NanoZolid^® technology that could bring upfront payments, R&D financing, and milestone payments as well as long-term royalty income. LIDDS is also seeking to strengthen and complement its ownership structure with both Swedish and international institutional investors and the aim is to secure financing with as low dilution of current shareholders as possible. The financing agreement signed with N&G trigger dilution only when LIDDS assesses that this type of financing is preferred, a tranche is drawn, N&G chooses to convert and LIDDS does not choose to redeem in cash. Based on the closing price on 21 February 2022, the dilution from one tranche would be approximately 4.3 percent.

N&G is a privately held Swiss investment firm providing innovative and tailor-made alternative financing solutions for small and mid-sized companies to facilitate their growth ambitions. N&G has historically provided financing to life-science companies such as Moberg Pharma, Onxeo, and Saniona. The agreement with N&G contains a profit sharing program, consisting of cash compensation to LIDDS based on a percentage of realized net capital gains on N&G’s sale of shares issued after conversion. This could potentially reduce LIDDS’ total cost for the financing.

“The successful proprietary NanoZolid^® technology platform developed by LIDDS is positively shaping the future of injectable drugs for cancer and other diseases”, said Marc Cattelani, CEO of Nice & Green. “Today, with LIDDS’ decision to move to the Nasdaq Stockholm Main Market, and the financial flexibility provided by our financing program, we are confident LIDDS’ management team will achieve remarkable milestones for patients around the world."

LIDDS has committed to call an Extraordinary General Meeting to receive an authorization for the Board of Directors to resolve to issue contertible notes pursuant to the agreement. A notice of Extraordinary General Meeting will follow in a separate press release on February 22, 2022. The company retains flexibility to also use other forms of financing.

For more information, please contact:

Nina Herne, CEO, Phone: +46 (0)70 714 74 57, Email: nina.herne@liddspharma.com

Jenni Björnulfson, CFO, Phone: +46 (0)70 855 38 05, Email:jenni.bjornulfson@liddspharma.com

This information is information that the company is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the aforementioned contact persons, on February 22, 2022 at 15.45 CET.

LIDDS AB (publ) is a Swedish-based pharmaceutical company with a unique drug delivery technology NanoZolid®. NanoZolid® is a clinically validated drug development technology and superior in its ability to provide a controlled and sustained release of active drug substances for up to six months. LIDDS has licensing agreements where NanoZolid is combined with antiandrogens and in-house development projects in clinical and preclinical phase for cytostatics and immunoactive agents. LIDDS (LIDDS) shares are listed on Nasdaq First North Growth Market. Redeye AB, certifiedadviser@redeye.se, +46 (0)8 121 576 90, is a certified adviser to LIDDS. For more information, please visit www.liddspharma.com.

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