Nanexa Year-end report 2020

Significant events during 2020

• Nanexa completed a rights issue that was fully subscribed and provided the company with SEK 45.5 million before issue costs
• Nanexa received approval for admission to trading on the Nasdaq First North Growth Market and the first day for trading was 29 May. In connection with this, Nanexa's shares were delisted from Spotlight Stockmarket.
• It was decided at the AGM on 2 June, among other things, to elect Göran Ando as the new chairman of the board and Mårten Rooth as a new board member, as well as to establish two warrant-based incentive programmes for employees and board members, respectively. A total of 1,116,000 warrants of series TO3 and TO4 were subscribed for, corresponding to a maximum dilution of 5.0%.
• The patent portfolio was strengthened by the approval of a patent application in the United Kingdom for an ALD reactor adapted for the commercial production of drugs coated with PharmaShell®.
• Nanexa obtained a GMP certificate from the Swedish Medical Products Agency, which grants a permit for the manufacture of clinical trial material in the company's pilot plant in Uppsala.
• The Japanese Patent Office approved another patent application for Nanexa, which provides broader protection than the patent approved previously.
• Nanexa received permission from the Swedish Medical Products Agency to start a clinical trials of the drug candidate NEX-18.
• Nanexa signed a collaboration agreement with the leading materials engineering solutions company Applied Materials, Inc. to establish a scaled-up, GMP-classified production facility for ALD-coated drugs at Nanexa in Uppsala. In parallel, an investment agreement was entered into with the venture capital branch Applied Ventures, which will invest up to USD 3 million in Nanexa in 2021 through directed issues of shares and subscription warrants.

Significant events after the end of the period

• Applied Ventures invested USD 1 million in a directed share issue in accordance with the investment agreement entered into at the end of 2020, which provided the company with approximately SEK 8 million after issue costs.
• Nanexa decided that the company's other proprietary product project, NEX-20, will focus on developing a long-acting formulation of lenalidomide for the treatment of multiple myeloma.
• Nanexa signed an evaluation agreement with an unnamed European biotech company. The company runs a development project in the cardiovascular area, where PharmaShell® can enable a long-acting injectable product.
• Redemption of warrants of series TO2 was carried out during the period 1-15 February 2021, where a subscription rate of 97.5% was achieved, which brings SEK 24.9 million to the company before transaction costs. The number of shares and votes in the company will thereby increase by 2.956.588 to 24.866.934 shares and votes.

Summary of the reporting period 1 January – 31 December 2020

• Turnover amounted to: TSEK 2,367 (1,710)
• Operating profit (EBIT) amounted to: TSEK -21,489 (-12,709)
• Profit after tax amounted to: TSEK -21,736 (-12,950)
• Earnings per share amounted to: SEK -1.09 (-0.88)
• Cash flow for the period amounted to: TSEK 1,313 (627)
• Cash and cash equivalents at end of period: TSEK 12,691 (11,378)

Summary of the reporting period 1 October – 31 December 2020

• Turnover amounted to: TSEK 549 (714)
• Operating profit (EBIT) amounted to: TSEK -7,768 (-5,242)
• Profit after tax amounted to: TSEK -7,814 (-5,298)
• Earnings per share amounted to: SEK -0.37 (-0.35)
• Cash flow for the period amounted to: TSEK -13,300 (-5,689)
• Cash and cash equivalents at end of period: TSEK 12,691 (11,378)

Figures in brackets refer to the corresponding period in the previous year.