Oasmia completes a private placement of new convertible instruments in the amount SEK 80 million

Oasmia Pharmaceutical AB (publ) (“Oasmia” or the “Company”) hereby announces that the Company has completed a private placement of a convertible loan in the total amount of SEK 80,000,000 with an interest rate of 5 per cent per year directed to and placed with a limited group of investors and paid in cash (the “Private Placement”). The convertible instrument issue is expected to provide the Company with SEK 80,000,000 before transaction related costs. Meanwhile, the Company informs that the Board of Directors of Oasmia has issued and allotted 25,806,451 new shares by virtue of utilisation of warrants of series 2018/2019.

The Private Placement has enabled Oasmia to place 40 new convertible instruments with a limited group of investors at a nominal value of SEK 2,000,000 per convertible instrument through an accelerated book building procedure.

The Company intends to use the proceeds from the Private Placement to strengthen its working capital as well as finance its continuing operations. The Board of Directors has determined, given the phase the Company is currently in, that this financing will give it time to finalize certain ongoing activities which the Board of Directors anticipates will be the basis to fulfil the Company’s long term commercial strategy.

In order to enable the placement, the Board of Directors of Oasmia has, by virtue of the authorisation granted by the Annual General Meeting held on 25 September, 2018, resolved on a directed issue of a new convertible loan in the amount of SEK 80,000,000. The convertible instruments have been subscribed at 100 per cent of the nominal amount and the convertible loan bear an interest rate of 5 per cent per year. The conversion rate is based on the closing price of Oasmia’s shares on Nasdaq Stockholm on 31 October 2018 with premium and will amount to SEK 14.50. The term of the loan is approximately one year with a maturity date on 31 October 2019 if not converted to shares earlier. The terms of the convertible instruments are based on an accelerated book building procedure on 31 October 2018 and the Board of Directors has thereby ensured that the terms of the convertible instruments corresponds to fair market standards.

Subject to the utilisation of warrants mentioned in this press release, the Company currently has 196,408,337 outstanding shares. If the convertible loan is fully converted into shares, the number of shares in Oasmia increases by 5,517,241 from 196,408,337 to 201,925,578 and the share capital increases by SEK 551,724.10 from SEK 19,640,833.70 to SEK 20,192,557.80. In the event of a full conversion into shares, the dilution effect will amount to approximately 2.73 per cent.

In addition it is informed that the warrants holder MGC Capital Ltd has utilized 25,806,451 warrants of series 2018/2019 for issue of 25,806,451 shares, each with a subscription of SEK 3.10 per share. The utilization constitutes an increase in the Company’s share capital of SEK 2,580,645.10 and the total issue amount amounts to SEK 79,999,998.10. The Board of Directors of the Company has agreed to the subscription price being paid by set-off of SEK 79,999,998.10 of MGC Capital Ltd’s total accrued receivable on the Company in the total nominal amount SEK 85,551,732.40. Following registration with the Swedish Companies Registration Office, and taking into account the outstanding shares of the Company pursuant to the above, the share capital will amount to SEK 22,221,478.80 and the number of shares will amount to 222,214,788.

For more information:
Julian Aleksov, Chairman of the Board
Tel: +46 18 50 54 40
E-mail:  julian.aleksov@oasmia.com

Notes to editors:

About Oasmia Pharmaceutical AB 
Oasmia Pharmaceutical AB develops, manufactures, markets and sells new generations of drugs in the field of human and veterinary oncology. The company’s product development aims to create and manufacture novel nanoparticle formulations and drug-delivery systems based on well-established cytostatics which, in comparison with current alternatives, show improved properties, reduced side-effects, and expanded applications. The company’s product development is based on its proprietary in-house research and company patents. Oasmia is listed on NASDAQ Capital Markets (OASM.US), Frankfurt Stock Exchange (OMAX.GR, ISIN SE0000722365) and NASDAQ Stockholm (OASM.ST).

Important information
This press release does not constitute or form part of a solicitation or an offer to purchase, sell, subscribe for, or in any other way trade in securities in Oasmia. The publication or distribution of this press release may in certain jurisdictions be subject to restrictions in accordance with relevant laws and persons in the jurisdictions where this press release has been published or distributed shall inform themselves of, and follow, such restrictions. Any securities referred to in this communication may not be offered or sold in any jurisdiction absent registration under applicable securities laws or an exemption from registration

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This information is information that Oasmia Pharmaceutical AB 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 01.00 am CET on November 1, 2018.