SoftOx Solutions AS — Capital/Financing Update 2023

Jun 9, 2023

SoftOx Solutions: Reached agreement with creditors and new capital raised: “Has put the company in a very good position"

SoftOx Solutions: Reached agreement with creditors and new capital raised: “Has put the company in a very good position"

OSLO – June 9, 2023: SoftOx Solutions AS (“SoftOx” or the “Company”), a medtech and clinical-stage pharmaceutical company based in Oslo, has entered into an agreement with the company’s creditors on a new pay back plan. In addition, the company has raised NOK 15 million in new equity and debt. New equity raised is NOK 3 million at NOK 8 per share. New debt is NOK 12 million maturing January 2024 with an interest of 25% for the period and warrants for buying shares for the total amount of NOK 42 million for NOK 8 per share. The creditors have agreed on a down payment plan where they get 25% before the end of June, 25% before the end of September and the final amount including overdue interest before the end of the year.

“We are currently exploring a number of exciting opportunities to commercialize our technology and I appreciate that our creditors have given us the leeway to continue these talks. This, together with the capital raise, takes the company out of the stressed financial situation and gives the board time until the end of the year, to pursue these opportunities”, says CEO Geir Almaas at SoftOx.

This, together with an agreement with the employees and the board members who has approved to delaying payments of salaries and debt for up to NOK 6 million on similar terms as the lenders in combination with a substantially cost reduction and funding from government funds has brought the company’s burn rate down to approximately NOK 1 million per month.

As stated in the stock exchange notice of 11th of May 2023, SoftOx has signed a Letter of Intent (LOI) with the Department of lmmunology and Microbiology (ISIM), Faculty of Health and Medical Sciences, University of Copenhagen, to outsource SoftOx’s product development saving huge costs for the company. The intention is to establish new and innovative solutions based on the SoftOx technology for fighting antimicrobial resistance and chronic infections in wounds and an inhaled broad spectrum of anti-infective treatment for the respiratory tract.

According to the company’s new strategy the company shall on its own only take technologies up to proof of concept. Afterwards SoftOx shall explore the opportunities of taking on a strategic partner for further development, selling parts or the whole technology platform or in combination with regional rights. At the moment wound care and disinfection both got early proof of concept.

“Our unique technology with very encouraging clinical results in early phase answers some of the biggest health challenges the world is facing, strategic talk with potential commercial partners, agreement with the University of Copenhagen and solid reduction in overheads and future product development, reduce the company’s need for future funding and makes the board confident that it has managed to put the company in a very good position for future development”, says Almaas.

For further information, please contact:

Geir Almås, Executive Chairman of SoftOx Solutions AS

Mail: ir@soft-ox.com

Phone: Front Desk: (+47) 948-59-599 or (+47) 977-59-071