STENOCARE A/S: Conversion of 5.0 mDKK of debt

STENOCARE A/S NASDAQ FIRST NORTH GROWTH MARKET, DENMARK TICKER:  STENO This information is information that STENOCARE A/S is obliged to publish in accordance with the EU Market Abuse Regulation. The information was provided by the contact person below for publication on June 26, 2023. At the extraordinary general meeting held on 13 June 2023, the shareholders of STENOCARE granted authorization for the Board of Directors to issue additional units, on the same terms as those that applied in the Unit Rights Issue that was successfully completed earlier this month. On basis of this authorization, the Board of Directors have now decided to exercise the previously planned parallel directed issue in which 3.1 mDKK of debt is converted into equity. Moreover, the Board of Directors and remaining lenders have agreed to convert an additional 1.9 mDKK of debt on the same terms. The conversions result in a total conversion of 5.0 mDKK, corresponding to 545,387 units compromising of 1,090,774 shares as well as 545,387 warrants of TO1 and 545,387 warrants of TO2.

CEO, Thomas Skovlund Schnegelsberg comments on the conversion: “We are pleased that we can now accommodate the desire from several of our loan-holders to convert existing debt into units on the same terms as those offered in our just completed and over-subscribed unit rights issue. The increased total amount of debt, now converted, leads to a further strengthening of our balance sheet and establishes an even more robust foundation for us to accelerate and upscale our commercialization efforts, with Germany as our newly added market.”

In the announcement of the unit rights issue on 15 May 2023, the Company announced a potential debt conversion of 3.1 mDKK, all of which will now be converted. Furthermore, an additional 1.9 mDKK will now be converted, consisting of lenders that have decided to convert additional debt and other debt. The new units are issued without pre-emptive rights for existing shareholders and on the same terms as in the Initial Rights Issue. The implied price per share in the conversion is DKK 4.58.

Therefore, and with the support of authorization from the extraordinary general meeting held 13 June 2023, the board of directors has resolved to issue a total of 545,387 units compromising of 1,090,774 shares, 545,387 warrants of TO1 and 545,387 warrants of TO2 to lenders converting debt. After the registration of the 1,090,774 shares from the debt conversion with the Danish Business Authority, which follows the recent registration of the 2,335,224 shares subscribed in the Initial Rights Issue, the total number of outstanding shares in Stenocare will reach 15,102,124. Each share has a nominal value of 0.08 DKK, culminating in a share capital of 1,208,169.92 DKK. The dilution resulting from the debt conversion equates to approximately 7.2 percent.