Intervacc has carried out a directed issue of approximately 6.5 million shares, raising gross proceeds of approximately SEK 147 million

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA, SWITZERLAND, UNITED STATES OF AMERICA OR ANY OTHER JURISDICTION IN WHICH THE PUBLICATION, DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL OR REQUIRE REGISTRATION OR ANY OTHER MEASURE.

Stockholm 16 June 2020

Intervacc AB (publ) (”Intervacc” or the ”Company”) (Nasdaq First North Growth Market: IVACC) hereby announces that the Company has successfully completed a directed issue of 6,537,973 shares, at a subscription price of SEK 22.50 per share (the “Directed Share Issue”). Through the Directed Share Issue, Intervacc will raise gross proceeds of approximately SEK 147 million.

Summary of the Directed Share Issue

The Board of Directors of Intervacc has, in accordance with the authorization granted by the Annual General Meeting on 11 June 2020, and as indicated in the press release of the Company earlier today, resolved on a directed issue of 6,537,973 shares at a subscription price of SEK 22.50 per share, consequently raising gross proceeds of approximately SEK 147 million. The subscription price in the Directed Share Issue has been determined through an accelerated bookbuilding procedure, and it is the assessment of the Board of Directors that the subscription price accurately reflects current market conditions and demand.

The subscription price of SEK 22.50 per share corresponds to a discount of approximately 4.5 percent in relation to the closing price on Nasdaq First North Growth Market on 16 June 2020. A number of existing and new shareholders participated in the Directed Share Issue, including Swedbank Robur, Fjärde AP-fonden, Handelsbanken Fonder, Länsförsäkringar Fonder, Aktie-Ansvar and funds managed by Aktia Asset Management.

The reason for deviating from the shareholders’ preferential right is to carry out a capital raise for the development of ongoing projects in a time and cost-efficient manner. Moreover, the Company will further diversify the shareholder base with Swedish and international institutional investors.

The Company intends to use the net proceeds from the Directed Share Issue to:
i. prepare for commercialization of Strangvac®[1] , including regulatory process with the USDA (the United States Department of Agriculture), technology transfer to the US, and regulatory processes in selected other markets outside the US and EMA[2] jurisdictions;
ii. advance pre-clinical vaccine projects to next stage; and
iii. continue to build and strengthen the organization to support the Company’s growth strategy and general corporate purposes.

The Directed Share Issue entails a dilution of approximately 13.0 percent of the number of shares and votes in the Company calculated after the Directed Share Issue. Through the Directed Share Issue, the number of outstanding shares and votes will increase by 6,537,973, from 43,586,490[3] to 50,124,463. The share capital will increase by approximately SEK 13,075,946.88, from approximately SEK 87,172,985.89 to approximately SEK 100,248,932.77.

In connection with the Directed Share Issue, the Company has undertaken, subject to customary exceptions, not to issue additional shares for a period of 180 days after the settlement date of the Directed Share Issue. In addition, the Company’s largest shareholder Thomas Eklund, currently holding approximately 6.7 percent of the shares and votes in Intervacc, members of the Board of Directors of Intervacc and management representatives of Intervacc have undertaken, subject to customary exceptions, not to sell any shares in Intervacc for a period of 90 days after the settlement date of the Directed Share Issue.

Advisers
Carnegie Investment Bank acted as Sole Global Coordinator and Bookrunner in connection with the Directed Share Issue. Cirio Advokatbyrå acted as legal adviser to the Company in connection with the Directed Share Issue.

For more information please contact:
Andreas Andersson, CEO
Phone: +46 (0)8 120 10 601, Cell: +46 (0)73 335 99 70
E-mail: andreas.andersson@intervacc.se

This information is information that Intervacc 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 23.40 CEST on 16 June 2020.

About Intervacc
Intervacc AB (publ) is a company within the biotechnology sector. The Company´s main area is to develop modern sub-unit vaccines against economically important bacterial infections, within animal health. The Company´s vaccine candidates are based on several years of research at Karolinska Institutet and Swedish University of Agricultural Research where the foundation was laid for the Company´s research and development work. The Intervacc share has been listed on the Nasdaq First North Growth Market since April 2017 with Eminova Fondkommission AB, adviser@eminova.se, +46 (0)8–684 211 10 as Certified Adviser.

Contact information for Certified Adviser
Eminova Fondkommission AB
E-mail: adviser@eminova.se, Phone: +46 (0)8 – 684 211 10

Important information

The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Intervacc in any jurisdiction, neither from Intervacc nor from anyone else.

This press release does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the Company. Any investment decision in connection with the Directed Share Issue must be made on the basis of all publicly available information relating to the Company and the Company’s shares. Such information has not been independently verified by the Sole Bookrunner. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied or distributed, directly or indirectly, in whole or in part, within or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland, United States of America or in any other jurisdiction where the announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Intervacc has not authorized any offer to the public of shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the Directed Share Issue. In any EEA Member State and the United Kingdom, this communication is only addressed to and is only directed at qualified investors in that Member State or in the United Kingdom within the meaning of the Prospectus Regulation.

In the United Kingdom, this press release and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this press release relates is available only to, and will be engaged in only with, “qualified investors” who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Information to distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II“); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements“), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in Intervacc have been subject to a product approval process, which has determined that the shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, distributors should note that: the price of the shares may decline and investors could lose all or part of their investment; the shares offer no guaranteed income and no capital protection; and an investment in the shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Directed Share Issue. Furthermore, it is noted that, notwithstanding the Target Market Assessment, the Sole Bookrunner will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in Intervacc.

Each distributor is responsible for undertaking its own Target Market Assessment in respect of the shares in Intervacc and determining appropriate distribution channels.

Forward-looking statements
This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Undue reliance should not be placed on the forward-looking statements in this press release. The information, opinions and forward-looking statements contained in this press release speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release.

[1] A modern vaccine against equine strangles.
[2] The European Medicines Agency. The centralized marketing authorization is valid in all of the EU member states, Iceland, Norway and Liechtenstein.
[3] Excluding 35,925 shares to be issued for the purpose of exercise of employee stock options and warrants under the employee stock option program 2017/2020:1 and incentive program 2017/2020:2, but which have not yet been registered with the Swedish Companies Registration Office.