Pharma Equity Group (PEG) Investor Update summary

Capital structure changes and rationale

• Reduced nominal share value from 1 DKK to 0.1 DKK to enable a capital increase, maintaining the same number of shares and equity structure.

• Capital reduction was necessary as the nominal value exceeded the share price, preventing a capital increase under regulations.

• Capital increase and reduction occurred on the same day, with 204 million new shares issued at a 20% premium to market price.

• The capital increase raised DKK 51 million, split between cash, loan conversion, and convertible bonds, reducing debt by DKK 38.5 million.

• Resulting dilution for existing shareholders is about 17%, but the move strengthens the capital structure and signals confidence.

Financial outlook and funding strategy

• Projected 2024 loss is between DKK -24 million and -29 million, necessitating the capital increase to support operations.

• Additional funding will be sought for drug candidate development, with a focus on attracting institutional investors.

• Convertible loans and potential licensing deals are key tools for future financing.

• Efforts are ongoing to secure non-dilutive funding, such as grants, and to digitalize convertible loans for broader investor access.

• The goal is to secure enough capital to operate for at least the next twelve months.

Strategic milestones and investor relations

• Key milestones for the next year include securing a licensing partner and generating strong data from new clinical studies.

• Ongoing dialogue with a major potential licensing partner, with a target to finalize a deal by late 2025.

• Plans to expand studies with larger patient bases to enhance investor and partner confidence.

• Management and board members have converted loans to shares, demonstrating commitment.

• Attracting larger and institutional investors is a priority, supported by improved capital structure and upcoming study results.