Alzinova enters into SEK 11 million short-term loan arrangement to secure its working capital needs

“This financing secures our short-term working capital and provides the flexibility to continue executing on our clinical and business priorities. It allows us to maintain full focus on advancing partnership discussions, which have gained positive momentum following the recent FDA Fast Track Designation for ALZ-101. With this structure in place, we can continue progressing with confidence and stability toward our next development milestones,” says Tord Labuda, CEO of Alzinova.

Background of loan arrangement
The purpose of the loan is to secure the Company’s working capital needs for the current financial year and well into Q1 2026. The Board of Directors has evaluated available financing alternatives and has concluded that the terms of the short-term loan are in line with prevailing market conditions. The Board further assesses that the loan constitutes an appropriate and efficient measure to bridge the Company’s short-term liquidity position and is in the best interests of all shareholders. Together with the earlier communicated loan promise from Maida Vale Capital AB (“Maida Vale”), amounting to 10 MSEK, the company has now extended its financial runway, giving room for continued discussions regarding partnership, licensing or structural deals.

Summary of loan terms
The loan carries an arrangement fee of five (5) percent of the total loan amount and a monthly interest rate of one and a half (1.5) percent, compounded. The loan matures on 31 March 2026, but the Company may repay the loan in full at any time during the term. The lenders consist of two external lenders, each providing an equal share of the total loan amount.

If the loan has not been repaid by the due date, the outstanding loan amount and accrued interest shall bear compound default interest at a monthly rate of four and a half (4.5) percent. If the loan is in default the lenders have the right to request that the Board of Directors resolve on a rights issue of at least SEK 45 million to repay the loan and accrued interest, and, if necessary, submit the resolution to a general meeting of the Company for approval. In such rights issue, the lenders shall be granted preferential rights to act as guarantors in the rights issue. The Company’s largest shareholder, Maida Vale, which is controlled by the Chairman of the Board of the Company, has undertaken to subscribe for shares corresponding to its pro rata share in such rights issue. Should the subscription with pre-emption rights not cover the loan amount and accrued interest, Maida Vale has also undertaken to provide a guarantee commitment for the remaining amount. In the event that the resolution on a rights issue is subject to approval by a general meeting, Maida Vale has further committed to vote in favour of such resolution.

For further information, please contact:
Tord Labuda, CEO
E-mail: info@alzinova.com

About Alzinova AB
Alzinova AB is a Swedish biopharmaceutical company in clinical development specializing in the treatment of Alzheimer's disease, where the starting point is to attack toxic amyloid-beta oligomers. The lead candidate ALZ-101 is a therapeutic vaccine against Alzheimer's disease. Alzinova's patented AβCC peptide technology makes it possible to develop disease-modifying treatments that target the toxic amyloid-beta oligomers that are central to the onset and development of the disease with great accuracy. From a global perspective, Alzheimer's disease is one of the most common and devastating neurological diseases, with around 40 million affected today. Based on the same technology, the company is also developing the antibody ALZ-201, which is currently in preclinical development, and the goal is to further expand the pipeline. The company's Certified Adviser on Nasdaq First North Growth Market is Mangold Fondkommission AB. For more information about Alzinova, please visit: www.alzinova.com