Faron Pharmaceuticals Oy has announced the successful completion of its fully subscribed EUR 30.7 million share offering. The offering attracted significant interest from both existing shareholders and new investors and was oversubscribed. The company raised a total of approximately EUR 30.7 million, with approximately EUR 3.7 million being paid by converting the company's Capital Loans and related arrangement fees and interests into shares.

With the gross proceeds of approximately EUR 27 million, Faron Pharmaceuticals Oy believes it will have sufficient resources to execute its core business and deliver on its key milestones for the year 2024 under the current business plan. This will also allow the company to comply with the financial covenants of the IPF Fund II SCA, SICAV-FIAR's Facilities Agreement until the latter half of March 2025.

The proceeds from the share offering will enable the completion of the Phase II of the company's BEXMAB clinical trial and allow Faron Pharmaceuticals Oy to pursue readiness to move to Phase III in drug development. The company will also seek advice from the FDA regarding next steps for drug development and pursue negotiating a licensing or partnership agreement for bexmarilimab.

The Board of Directors of the company has decided on the completion of the share offering and the issuance of a total of 30,709,056 newly issued treasury shares and new shares in the company in the share offering, corresponding to approximately 29.9 percent of the company's outstanding shares and votes after completion of the offering. The subscription price was EUR 1.00 per share, and allocation preference was given to qualifying shareholders and DI holders in the offering.

The offering was conducted as a directed share issue through a public offering to private individuals and legal entities in Finland and an institutional offering to institutional investors in the European Economic Area and internationally. Additionally, the company conducted a UK Open Offer and an offer of Offer Shares to retail investors in the United Kingdom through intermediaries. The offering attracted significant demand from both existing shareholders and new investors, with more than 3,000 total subscribers.

In summary, Faron Pharmaceuticals Oy has successfully completed a fully subscribed EUR 30.7 million share offering, which will provide the company with the necessary resources to advance its core business and pursue its key milestones for the year 2024.