SoftOx Solutions AS — Capital/Financing Update 2022

Jun 28, 2022

SoftOx Solutions AS: Strengthens the liquidity

SoftOx Solutions AS: Strengthens the liquidity

The Board of SoftOx Solutions AS (the “Company”/"SoftOx") has entered into a loan agreement with Almhaug Bolig AS, where the main shareholder is one of the shareholders in SoftOx. Almhaug Bolig AS will provide the company with a short-term loan of NOK 15 million.

The Company has experienced some delays both in connection with regulatory and commercially processes and in the implementation of certain clinical studies. To compensate for the liquidity burden caused by these delays, the company’s main shareholder has given the company a loan of NOK 15 million.

The Company is considering increasing the amount of the Loan to up to approx. NOK 30 million to be raised from existing shareholders and certain professional investors, subject to a minimum individual loan amount of NOK 1 million.

The net proceeds of the Loan will be used to fund the Company's ongoing project and operating activities and for general corporate purposes.

Almhaug Bolig AS has committed to NOK 15 million of the Loan, of which NOK 5 million will be in form of refinancing of the convertible loan raised in October 2021 and the remaining NOK 10 million will be in cash. Almhaug Bolig AS is a shareholder of the Company, in which the Company's ultimate main shareholder is also a shareholder and chair of the board.

The Loan does not accrue any interests and the loan falls due 15 January 2024. The individual lenders may convert the outstanding amount of the Loan into shares in share capital increases with issuance of new shares in the Company and set off of the lenders' claim for repayment of the Loan at any time prior to maturity. The conversion price will be calculated based on a volume weighted average trading price for the Company's shares prior to the Loan less 10%, provided, however, that if the Company carries out a share offering at a price lower than the conversion price, the lender will have the right to convert the loan at the lower price in such offering shall apply.

Any new shares to be issued pursuant to the conversion right under the loan agreement will be resolved by the Company's board of directors pursuant to the authorization granted by the Company's annual general meeting on 12 May 2022 to increase the Company's share capital (or any other authorization available to the board of directors at such time).

The Board has considered alternative structures for raising funds. Following careful considerations, the Board is of the view that it will be in the common interest of the Company and its shareholders to raise funds through the convertible loan setting aside the pre-emptive rights of the shareholders. By structuring the funding as a convertible loan, the Company will be in a position to raise capital before the summer, and in an efficient manner, with a lower discount to the current trading price and with significantly lower risks compared to a rights issue.

The Company expects that it will seek to raise additional funds during the next 12 months and will then seek to structure such offering in line with market practice for capital raising, subject to prevailing market conditions.

For further information, please contact:

Geir Almås, CEO of SoftOx Solutions AS

Mail: ir@soft-ox.com

Phone: Front Desk: (+47) 948-59-599

The information included in this announcement is defined as inside information pursuant to article 7 of the Market Abuse Regulation, and is publicly disclosed in accordance with article 17 of the Market Abuse Regulation and section 5-12 of the Norwegian Securities Trading Act. The announcement is made by the contact person.

About SoftOx Solutions AS

SoftOx Solutions AS (SoftOx, listed on Euronext Growth Oslo) is a Norwegian

medtech/biotech company based in Oslo with the aim of helping to combat major

threats to human health, namely the emergence of antimicrobial resistance (AMR), biofilm

infections in chronic wounds and the spread of viruses. For more information on

SoftOx, visit www.soft-ox.com