Fundamentals of the L1 Capital financing

 

Description and status on the L1 Capital financing:

 

Episurf Medical AB (publ) has signed an agreement relating to a financing of up to SEK 70 million. The capital will be used for execution of the company’s growth strategy. The transaction is carried out through the issuance of convertible notes (the “Notes”) with warrants attached (the “Warrants”) in several tranches spread over 36 months (each a ”Tranche”). Episurf received SEK 7 million through the first Tranche. Existing shareholders will receive free warrants to protect them against dilution.

 

The transaction in short:

  • Investor is a fund managed by L1 Capital Pty, Ltd.
  • Investor commitment to SEK 70 million of convertibles notes with warrants attached in multiple tranches over the next 36 months.

 

The Notes:

  • Principal amount of SEK 50,000 per Note.
  • Interest free.
  • Maturity of 12 months.
  • Conversion price 8% discount over the reference price. (Reference price is the lowest daily volume weighted average price (VWAP) during the past 15 trading days).
  • Episurf has the option to remit cash or shares in the capital.

 

The Warrants:

  • Maturity of five (5) years.
  • Strike price is the tranches issuance reference price plus 20%.

 

Tranche structure:

  • Issuance of tranches is at Episurf’s discretion.
  • Tranche issuance reference price is the lowest daily VWAP during the past 15 trading days.
  • Number of Notes per tranche is the tranche amount divided by 50,000.