Cline Scientific

After a few years of selling its patented nanotechnology, Cline has chosen to focus most of its operations on the company's stem cell therapy project StemCART. This is run with a solid group of advisors from Gothenburg University and with the support of orthopedic surgeons at Sahlgrenska University Hospital and Halland Hospital Varberg. The project has reached the latter part of the pre-clinical phase where it is relevant to start the preparations for the clinical development. The present new issue is made to cover expenses for:

• Start of regulatory documentation

• Start of collaboration with contract manufacturers of clinical batches of StemCART

• Accelerated laboratory and clinical studies

• As well as capital to strengthen working capital

In order to complete the board's strategy to carry out a Phase I study in order to then be able to enter into cooperation with a major pharmaceutical company or sell the project, further capital contributions will be required within the next year. The company participates in the EIC Accelerator program which is part of Horizon Europe. If the application goes through, it would secure a substantial part of the capital requirement for the next two years. In the first step of the application process, the company's application has passed with good grades, but further review of the application will take place when step 2 of the process has been evaluated in the fall of 2023.

Conditions for the new issue

The right to subscribe primarily belongs to the company's shareholders, who receive a subscription right for each share, but other private and institutional investors are also welcome to subscribe.

For each (1) existing A share, one (1) subscription right of series A is obtained, and for each existing B share, one (1) subscription right of series B is obtained. One (1) subscription right gives the right to subscribe for two (2) new shares in the respective series. Each issued share has a quota value of SEK 0.10 per share.

The issue price is SEK 0.24 per share.

The issue comprises a maximum of 2,171,946 shares of series A and a maximum of 36,365,622 shares of series B. To complete the issue, at least 27,500,000 shares must be subscribed. Otherwise, the issue will be terminated, and the subscription proceeds are returned to the respective subscribers.

Shares that are not subscribed with pre-emptive rights shall be allocated primarily to those who subscribed for shares with the support of subscription rights and who wish to subscribe for additional shares, (regardless of whether they were shareholders on the record date or not), pro rata their subscription with the support of subscription rights, and, in insofar as this cannot happen, by drawing lots. After that, any remaining shares must be distributed to the new investors who subscribed to the issue.

The new shares that are added to the issue are entitled to a dividend for the first time on the dividend record date that falls closest after the new shares have been entered in the share register at Euroclear Sweden AB.

NOTE THAT NEITHER THE CASH PAID FOR SUBSCRIPTION RIGHTS IN THE MARKET NOR ANY COURTAGE WILL BE REFUNDED IF THE MINIMUM LIMIT IN THE REPRESENTATIVE ISSUE IS NOT REACHED. INVESTORS WHO ACQUIRE SUBSCRIPTION RIGHTS IN THE MARKET WILL THEREFORE RISK LOSING THE ENTIRE AMOUNT PAID FOR THE SUBSCRIPTION RIGHTS IN THE CASE OF THE RIGHTS ISSUE BEING TERMINATED.

Schedule for the rights issue

• The record date for the allocation of subscription rights is 19 June 2023.

• The last day for trading in the share, including subscription rights, is June 15, 2023.

• First day of trading in shares excluding subscription rights is June 16, 2023.

• Subscription period 26 June – 12 July 2023.

• Subscription with preferential rights takes place by payment no later than July 12, 2023.

• Subscription without preferential rights can take place during the same period.

• Trading in subscription rights of series B will take place on First North during the period 26 June – 7 July 2023. If the issue is canceled, all subscription rights expire without value.

• Trading in BTA of series B will take place from and including the day the company ascertains that the minimum limit for the completion of the issue has been reached, which is estimated to be 19 July 2023 until the shares are registered with the Swedish Companies Registration Office, which is estimated to take place at the beginning of August 2023. Should if the minimum limit for the completion of the issue is not reached, the issue proceeds will be repaid in full via the respective subscriber's representative.

The complete issue memorandum and registration forms will be published on the Company's website www.clinescientific.com  and Nordic Issuing's website www.nordic-issuing.se before the subscription period starts.

For more information, please contact:

Hanne Evenbratt, CEO
Email: hanne.evenbratt@clinescientific.com
Phone: +46 703-585 088

The company is listed on the Nasdaq First North Growth Market. Redeye AB is Cline Scientific's Certified Adviser.

 This information is information that Cline Scientific is required to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication by the contact person set out above, at  8:30am CEST on 12 June 2023.