Regulatory press release

Modus Therapeutics Holding AB Announces Final Outcome in Rights Issue

THIS PRESS RELEASE MAY NOT BE PUBLISHED, RELEASED, OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN OR TO AUSTRALIA, BELARUS, HONG KONG, JAPAN, CANADA, NEW ZEALAND, RUSSIA, SOUTH AFRICA, SWITZERLAND, SINGAPORE, UNITED KINGDOM, THE UNITED STATES, OR ANY OTHER JURISDICTION WHERE SUCH ACTION IS SUBJECT TO LEGAL RESTRICTIONS. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO ACQUIRE SECURITIES IN MODUS THERAPEUTICS HOLDING AB. SEE ALSO THE SECTION "IMPORTANT INFORMATION" BELOW.

Modus Therapeutics Holding AB (publ) (“Modus” or the “Company”) has concluded its new share issue with pre-emptive rights for the Company’s shareholders that was announced on November 8, 2023 (the “Rights Issue”). The Rights Issue was covered by subscription commitments of approximately 43.8 percent. In total, 9,682,280 shares were subscribed for, corresponding to approximately 48.1 percent of the Rights Issue, of which approximately 47.8 percent of the shares were subscribed for with the support of subscription rights, and approximately 0.3 percent without the support of subscription rights. Those who have been allocated shares without the support of subscription rights will soon be notified through a settlement note or via their custodian.

The subscription price in the Rights Issue was SEK 2.00 per share. Modus will thus receive approximately MSEK 19.4 before issue costs through the Rights Issue, primarily financing general working capital, a clinical phase IIa study in anemia of chronic kidney disease, preparation for other clinical activities, as well as the storage of sevuparin and its distribution to the malaria study.

"We are very happy about the outcome, which reinforces the already great commitment and trust that our long-term investor Karolinska Development shows, both with the new investment of SEK 15 million, and through the conversion of another approximately SEK 20 million corresponding to our previous bridging loans. In addition, we are very grateful to the additional investors who chose to join this issue, which overall enables us to move forward debt-free with an adapted clinical development plan in anemia and chronic kidney disease, our latest addition to the pipeline.”, comments John Öhd, CEO.

Shares and Share Capital
Through the Rights Issue, Modus’ share capital will increase by SEK 580,936.80, through the issue of 9,682,280 shares, amounting thereafter to SEK 2,156,333.94 distributed over 35,938,899 shares.

Trading with Paid Subscribed Shares
Paid subscribed shares (BTA) are traded on the Nasdaq First North Growth Market under the ticker name MODTX BTA until the Rights Issue has been registered with the Swedish Companies Registration Office, which is expected to occur in week 50, 2023.

Allocation
Notifications of allocation of shares subscribed for without the support of subscription rights will shortly be sent to those who have been allocated shares via a settlement note. Nominee registered shareholders will receive notification of allocation in accordance with their respective nominee's routines. The allocation of shares subscribed for without the support of subscription rights was conducted according to the principles outlined in the prospectus published on November 14, 2023.

Advisors
Penser By Carnegie, Carnegie Investment Bank AB (publ) is the financial advisor to Modus in connection with the Rights Issue, and Advokatfirman Vinge KB is the legal advisor.

About Modus Therapeutics and sevuparin
Modus Therapeutics is a Swedish biotechnology company headquartered in Stockholm is developing its proprietary polysaccharide sevuparin as a potential treatment for several major healthcare needs including sepsis/septic shock and other disorders with severe systemic inflammation as well as states of anemia, related to chronic inflammation such as kidney disease. There is a great need for new treatments that can effectively treat these conditions. Modus’ ambition is to create a paradigm shift in the care of these diseases, where sevuparin could provide therapeutic benefits. Modus Therapeutics is listed on the Nasdaq First North Growth market (“MODTX”). More information is available at www.modustx.com.

Sevuparin is a clinical stage, innovative proprietary polysaccharide drug with a multimodal mechanism of action, including immunomodulating, anti-adhesive and anti-aggregate effects. Sevuparin is a heparinoid with markedly attenuated anti-coagulation features that allows severalfold higher doses to be given, compared to regular heparinoids, without the associated risk for bleeding side-effects. Two routes of administration of sevuparin are currently being tested – an IV formulation for in-patient administration and a subcutaneous formulation that allows ambulatory and home care administration.

Important Information
The information in this press release does not constitute an offer to acquire, subscribe or otherwise trade in shares or other securities in Modus. The invitation to concerned persons to subscribe for shares in Modus will be made only through the prospectus that Modus will publish on or about November 14, 2023. No action has been taken, or will be taken, by Modus to permit an offer to the public in jurisdictions other than Sweden.

This press release may not be published or distributed, directly or indirectly, in or to Australia, Belarus, Hong Kong, Japan, Canada, New Zealand, Russia, Switzerland, Singapore, South Africa, United Kingdom, the United States or any other jurisdiction where such action in whole or in part is subject to legal restrictions, or would require additional prospectus, registration or other measures than what follows from Swedish law. The information in this press release may also not be forwarded or reproduced in a way that is contrary to such restrictions or would entail such requirements. Actions contrary to this instruction may constitute a violation of applicable securities legislation. Neither subscription rights, paid and subscribed shares nor new shares subscribed for in the offering have been registered or will be registered under the United States Securities Act of 1933 as amended (the "Securities Act") and may not be offered, subscribed for, exercised, pledged, sold, resold, delivered or transferred, directly or indirectly, in or to the United States, except pursuant to an applicable exemption from the registration requirements of the Securities Act. The offer is also not directed at persons domiciled in Australia, Belarus, Hong Kong, Japan, Canada, New Zealand, Russia, Switzerland, Singapore, South Africa, United Kingdom or in any other jurisdiction where participation would require additional prospectus, registration or other measures than those that follow from Swedish law.

Forward-looking statements
This press release contains certain forward-looking statements that reflect Modus’ current views and expectations regarding future events and financial and operational developments, including statements regarding the Rights Issue and statements regarding guidance, planning, prospects and strategies. Words such as "intended," "estimated," "expected," "planned," "estimated," "may," and other expressions that imply indications or predictions of future developments or trends and are not based on historical facts constitute forward-looking statements information. Although Modus believes that these statements are based on reasonable assumptions and expectations, Modus cannot guarantee that such forward-looking statements will be realized. Because these forward-looking statements involve both known and unknown risks and uncertainties, actual outcomes may differ materially from those expressed in forward-looking information. Forward-looking statements in the press release speak only as of the date of the press release and are subject to change without notice. Potential investors should not place undue reliance on the forward-looking information contained herein, and potential investors are strongly encouraged to read those parts of the prospectus that include a more detailed description of factors that may affect the Company's business and the market in which the Company operates. The Company makes no promises to publish updates or revisions to forward-looking statements as a result of new information, future events or the like beyond what is required by applicable laws or stock market regulation.

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