Institutional investor secures MediRätt’s long-term funding

Institutional investor secures MediRätt's long-term funding

MediRätt and European Select Growth Opportunities Fund (the "Investor") have signed an agreement under which MediRätt may issue convertible bonds (the "Convertibles") in several tranches for a total maximum amount of SEK 50 million over 18 months. The capital injection will be used for the development and launch of the digital drug dispensing machine Dosell. In connection with the issuance of Convertibles, MediRätt will also issue warrants (the "Warrants") to the Investor as well as to existing shareholders as an anti-dilution measure. The Warrants will be issued free of charge.

The company will issue Convertibles with Warrants in up to 10 tranches over a period of 18 months, subject to the terms and conditions of the agreement. Each tranche includes Convertibles in the amount of SEK 5 million, totaling a maximum amount of SEK 50 million in Convertibles. The Annual General Meeting of MediRätt held on 11 April 2018 resolved to authorize the board of directors to issue shares, convertibles and/or warrants.

"We are very pleased to have signed this agreement with a long-term investor who shares our view of Dosell's potential. We have chosen to focus on financing needs over the next 18 months, and this solution gives us both increased security and flexibility during this period. It gives us the opportunity to take Dosell into the next phase, demonstrating and marketing the system in the municipalities. It also gives us the opportunity to expand our team with the right kind of competence" says Carl Johan Merner, CEO of MediRätt.

The framework agreement states, among other things, that MediRätt will issue Warrants to the Investor in conjunction with issuing Convertibles. Such Warrants are to be issued without consideration and will entitle to subscribe for new Class B shares. As an anti-dilution measure, existing shareholders will also receive (pro rata in relation to their shareholdings) Warrants without consideration which will mirror the conditions for the Warrants issued to the Investor. The record date to receive one free shareholder Warrant will be determined in connection with the resolution to issue warrants.

The Warrants will be listed on Nasdaq First North.

The tranches will be subscribed by European Select Growth Opportunities Fund. The company's assets under management amount to approximately SEK 7 billion distributed among five funds, focusing on small-cap technology and healthcare companies that show a high growth potential. MediRätt's right to apply for each tranche is subject to different conditions, including the price and liquidity of MediRätt's B shares being above a certain level and that the Investor's total holdings of Convertibles and shares do not exceed a certain level.

More information on funding below.

Convertibles and Warrants of the first tranche when called for in brief: The nominal amount of each Convertible is SEK 100,000. They do not carry interest and have a maturity of 12 months from their date of registration with the Swedish Companies Registration Office. During this term, the Investor may request to convert the Convertibles in whole or in part at a conversion price corresponding to a 10% discount to the reference price at the time of the conversion.

In the event of such a request for conversion, MediRätt has the right to fulfill its obligations, at its sole discretion, by way of a settlement in cash or in B-shares, or a combination of both. This enables MediRätt to reduce the potential dilution effect when converting the Convertibles

The number of Warrants issued to the Investor will be determined as a function of their exercise price and a potential aggregate exercise amount corresponding to 45 percent of the total nominal amount of Convertibles under the tranche (i.e. SEK 2,250,000).

The Warrants expire three years after their date of registration with the Swedish Companies Registration Office. Each Warrant entitles the holder to subscribe for one new share of class B (subject to standard adjustments) in MediRätt at an exercise price determined based on the agreed reference price. The Warrants will be listed on Nasdaq First North.

Additional terms for Convertible and Warrants for future tranches in brief: Convertibles and Warrants may be issued in up to 9 additional tranches of 5 MSEK each (the amount can be increased or decreased if the Investor and MediRätt so agree). The company's call for new tranches is based on MediRätt's own assessment. The terms and conditions of the Convertible and Warrants will be published on MediRätt's website, as well as a follow-up table indicating the conversions and the number of convertible bonds and warrants outstanding, http://www.mediratt.com/.

Stockholm 2018-05-21

Please contact CEO Carl Johan Merner

This information is such that MediRätt AB is obligated to disclose in accordance with the EU Market Abuse Regulation (MAR). The information was submitted for publication on May 21, 2018 at 08.50 CET.

MediRätt AB (publ)
Stockholmsvägen 33
181 33 Lidingö
Tel + 46 (0)8 765 66 33

E-mail:
www.mediratt.com 

The following documents can be retrieved from beQuoted
MediRatt Pressrelease 2018-05-21 English.pdf

About MediRätt AB (publ)
MediRätt is a Swedish medical technology company that develops digital solutions for safer medication and drug dispensing. The company was founded in 2008 by general physician Göran Sjönell and industrialist Sten Röing. MediRätt has developed the patented digital drug dispensing machine Dosell, as well as a series of applications that together form a unique overall concept to ensure that elderly and multi-medicating patients receive reliable and safe medication.

The company is listed on NASDAQ First North Premier. Erik Penser Bank, 08-463 80 00, is the company's Certified Adviser. Further information is available at www.mediratt.com.