February 19, 2013

Genovis’ Board of Directors decides on rights issue

Regulatory

Sales of products from Genovis’ protein engineering portfolio have shown a steady increase of about 100% percent annually. Genovis aims to maintain this growth rate during 2013 and thus approach a positive cash flow. Achieving this goal requires financing of about SEK 7 million. At the same time, because the Board of Directors at Genovis wishes to increase transparency and clarity when communicating about developments in the two portfolios, it has decided to streamline the activities of the parent company.

Consequently, the nano portfolio, which focuses primarily on new contrast agents intended for both the preclinical and clinical markets, will be placed in the wholly owned subsidiary GeccoDots AB (formerly Eijdo research AB). Genovis will raise funds to actively run the subsidiary in 2013. The cost is expected to be about SEK 6 million and is included in the 2013 budget. The project, which focuses on both imaging of lymph nodes in tumor diseases and stem cell tracking, will continue to be carried out to the extent that the subsidiary receives financing, which is expected through research support and other external financing.

To achieve the above objectives, the Board has decided to conduct a rights issue.

Rights issue

With the authorization of the 2012 Annual General Meeting, the Board of Directors of Genovis has decided to conduct a rights issue to existing shareholders in which three (3) existing shares entitle the holder to subscription for one (1) new share at a subscription price of SEK 3.50/share. As a result of this decision share capital could increase by a maximum of SEK 1,578,075.60 through the issuance of up to 3,945,189 shares. Following the completed rights issue, share capital will amount to a maximum of SEK 6,312,302.80 and the number of shares to 15,780,757.The Company will raise about SEK 13.8 million before issue expenses, which are expected to be SEK 600,000. The issue will have a dilutive effect of 25% on the holdings of those who do not subscribe for their full stake.

Principal owners Mikael Lönn and LMK Ventures AB have provided written subscription undertakings and will subscribe for their respective shares of the issue. In addition, Mikael Lönn and LMK Ventures AB have provided a guarantee along with subscription commitments guaranteeing 70% of the total issue volume. Guarantee fees of 5% will be charged on the amount exceeding the sum of the underwriters’ subscription undertakings. The guarantee fee is SEK 256,141 to be divided equally between the underwriters.

Timetable for rights issue

March 28, 2013 Record date for participation in the rights issue; shareholders registered on this day in the share register maintained by Euroclear will receive subscription rights for participation in the rights issue.

April 4-17, 2013 Subscription period. Subscription with preferential rights through cash payment during the subscription period. Registration of interest in subscription without preferential rights may be submitted throughout the subscription period.

Investor meeting

In conjunction with the rights issue, Genovis will hold investor meetings on three occasions. CEO and founder Sarah Fredriksson, as well as representatives of Genovis’ management team, will attend all meetings. Information about investor meetings and registration will be available on the Genovis website.

Preliminary schedule for investor meetings

Lund April 3

Helsingborg April 4

Stockholm April 9

ABOUT GENOVIS

Genovis develops and sells innovative technologies from two unique product portfolios. The first includes enzymes that facilitate development and quality control for applications such as antibody-based drugs. The products launched to date are aimed at customers who work with development of drugs, new diagnostic methods and basic research.

The second consists of nanotechnology in new contrast agents and focuses on design, production and characterization of nanostructures as contrast agents in medical imaging. The nanostructures and methods that Genovis focuses on can also be used as carriers of various substances in the development of new drug delivery methods. The projects are mainly in-house, but also include collaborations with research groups, including at Lund University.

Genovis shares are listed on the First North OMX Nordic Exchange and Thenberg Fondkommission is our certified advisor.

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