Background and Motives for the Credit Facility
With available funds of SEK 51 million as of the end of March 2025 and with the Credit Facility of SEK 30 million, SynAct has an estimated financial runway up until mid-2026, thereby securing funding to continued business development activities on the back of the completion of Synact’s phase 2b ‘ADVANCE’ study regarding partnerships for SynAct’s development programs and continued regulatory interaction with EMA and FDA as part of the maturation of the Rheumatoid Arthritis program.

The credit facility will only be used when necessary and as a secondary financing option. Priority will be given to other financing options, such as financing from the stock market or various partnership agreements.

Terms of the Credit Facility
The Credit Facility amounts to a maximum of SEK 30 million and can be utilized in full or in parts up to the total amount at the request of SynAct. Credit withdrawals can be made up to and including December 31, 2026. There is no amortization requirement linked to the Credit Facility, however, SynAct enjoys the right to amortize any amount during the term.

SynAct has not, within the framework of the raising and possible utilization of the Credit Facility, given the Lender a pledge/deposit in SynAct or its intangible assets such as intellectual property.

The Credit Facility is subject to an arrangement fee of 5,0 percent of the Credit Facility, regardless of whether it is utilized or not. Any withdrawals from the Credit Facility carry an annual interest rate of 6,0 percent. SynAct has the right to repay any withdrawals before the expiration of the Credit Facility without a redemption fee.

Conditional upon (i) shareholder approval, either from a shareholder meeting or by way of an authorization granted to the board by the shareholder meeting, (ii) being compliant with the market abuse regulation, the Swedish Companies Act (2005:551) and good market practice and (iii) the Lender not holding any shares, warrants, options, convertibles, debentures or other securities in relation to SynAct, the Lender has the full right to convert any outstanding amount drawn from the Credit Facility to ordinary shares in SynAct when it has lend out at least 50% of the total Credit Facility. The subscription price in such directed share issues will be the Volume Weighted Average Price during the 15 trading days preceding the decision from the Lender to off-set by way of a directed share issue.

The Board of Directors has assessed the terms and conditions within the framework of the Credit Facility as market-based and that the raising of the Credit Facility is in the best interests of both the company and its shareholders.

"I am very satisfied with the support and confidence that we have received from our major shareholder, Hunter Capital,” said Jeppe Øvlesen, CEO of SynAct Pharma. “SynAct has a remarkable drug candidate with resomelagon (AP1189). The data gained so far point to a major change to how we help the body resolve excessive inflammation in autoimmune diseases as rheumatoid arthritis and in severe viral infections, conditions where inflammation can overwhelm the immune system’s ability to counter the inflammation that can lead to suffering, tissue damage and loss of function.”

"As one of SynAct Pharma's major shareholders, we are pleased to be able to deepen our partnership with the company and offer a financing solution on very attractive terms. Through the financing solution, SynAct Pharma gains a stronger financial stability and will at the same time be in a good position for dialogues about strategic partnerships with major pharmaceutical players," says Oliver Aleksov, Chairman of the Board of Hunter Capital.