PHI’s Board of Directors proposes a Direct Issue of shares of 9.9 MSEK to Altium

Phase Holographic Imaging (PHI) informs the market that to raise capital, PHI’s Board of Directors proposes a direct issue of 2 374 820 new shares to the Company’s largest shareholder, Altium S.A. PHI will publish the notice for an extraordinary general meeting, to vote on this proposal, through a separate press release. If the shareholders approve, Altium will acquire shares for a price of 4,17 SEK per share, corresponding to a total capital injection of 9 902 999 SEK before transaction-related costs. After the direct issue, Altium ownership in PHI will be 24.6%.

PHI aims to become a leading company for cell quality control in regenerative medicine by utilizing its proven QPI technology and expertise and driving product development for the clinical market.

The Company’s ability to meet its goals and timeline within regenerative medicine outlined in its 2022 rights issue prospectus depends on available funding. Earlier this year, PHI secured the proceeds of the fully-subscribed warrants of series TO 3. However, further funding will enable PHI to fully capitalize on the current momentum and accelerate the Company’s global clinical market expansion and product development.

The direct issue to Altium is a strategic decision to increase future sales significantly. In an associated distribution agreement, Altium receives the right to market and sell PHI’s products in its designated territories to actively utilize its extensive distributor network and global sales contacts. This direct issue is advantageous for shareholders and more cost-effective than a rights issue, which often comes with significant costs, such as guarantee commitments and transaction costs, that can amount to 15-20% of the proceeds. Additionally, opting for a rights issue would likely require securing high-interest-rate bridge loans.

The subscription price of this new issue is set at an average volume-weighted price (VWAP) with a 15% discount to make it fair and in line with the market. The board has received financial advisory confirmation that this proposal is better than conducting a rights issue involving higher costs and a much lower share price. As the trading volume of the Company’s shares fluctuates, the stock market price may not always reflect the shares’ true value. The board, therefore, sees the subscription price of 4,17 SEK as reasonable and in line with similar issues by other companies on trading platforms in the current market situation.

The board is pleased to present a proposal that serves the best interests of both the Company and its shareholders. The proposal’s specifics will be detailed in the notice for the upcoming extraordinary general meeting.

This funding further propels our Regenerative Medicine initiatives and our pursuit of GMP certification, which we set in our 2022 rights issue goals. Now is the ideal time to expedite these projects and secure our operations beyond 2025.

Patrik Eschricht, PHI CEO

This disclosure contains information that Phase Holographic is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 26-10-2023 17:58 CET.

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