IRRAS

An extensive evaluation of different financing alternatives was initiated at the beginning of 2023, and, to date, this process has not identified any tangible financing options other than the public cash offer. During the ongoing public cash offer process, the Company has continued to explore alternative financing options, which would provide IRRAS needed capital to repay the short-term loan facility, but to date, no alternative financing options have been identified, and there is an imminent risk of the Company defaulting on the short-term loan agreement and becoming insolvent.

Additionally, under the short-term loan facility, the Company has pledged its patents and shares in its United States subsidiary, IRRAS USA Inc., to Bacara Holdings as collateral. The terms of the loan also outline that IRRAS USA Inc. will guarantee all remaining obligations of IRRAS AB in exchange for IRRAS AB entering into a license agreement with IRRAS USA Inc. (which would be collaterally assigned to the lender) that will grant IRRAS USA Inc. an exclusive, royalty-free, fully-paid, irrevocable, perpetual license to all of IRRAS’ intellectual property everywhere in the world other than Sweden, Denmark, Norway, and Finland.