NeuroVive: Secured Financing

The rights issue was successfully completed, adding 83.7 million new shares to a total of 269.6 million. 26.2% of the issue was subscribed for by using the subscription rights and a high percentage, 63.5%, was subscribed for by the guarantors. This might make investors uncertain whether there will be a large sell-off. This has not been the case so far and we think this is because the agreement with the potential new long-term investor Hadean Ventures has boosted the confidence in the company and in the stock.

Hadean Ventures will invest up to SEK 20m in the company to a price of max SEK 0.75. There are two conditions for this: 1. That the rights issue is subscribed and paid to 90% (fulfilled), and 2. That the volume weighted average price (VWAP) between June 1^st and June 12^th is not below SEK 0.70. If this price falls below SEK 0.70, the investors can decide to pay on their own discretion SEK 0.70 per share.

We believe that both investors in the stock and guarantors might be waiting to see the outcome of the directed share issue and this is limiting the expected sell-off.

The improved financial position for NeuroVive also means that it can move its compounds further through clinical trials and thus increase the valuation of the company before a potential new capital raising.