Following the expiry of the payment deadline, OncoZenge AB (publ) ("OncoZenge" or the "Company") provides the following update on the status of the fourth tranche. The extended payment deadline for the remaining subscription proceeds under the fourth and final tranche of the directed share issue to Sichuan Yangtian Bio-Pharmaceutical Co., Ltd (the “Investor”), pursuant to the investment agreement dated 27 January 2025 between the parties (the “Investment Agreement”), expired today, 28 August 2026, without full payment having been received. In light of previous communication and the uncertainty surrounding the fourth tranche, including the Investor’s letter to the Board dated 27 August 2026 that payment would be withheld, and having regard to the best interests of the Company and its shareholders, the Board of Directors (the “Board”) has not granted any further extension of the payment deadline.
The Company has previously granted the Investor several extensions of the payment deadline for the fourth tranche and considers that it has fulfilled all of its own obligations under the Investment Agreement, including the agreed operational milestones, while showing flexibility and acting in good faith throughout the process.
Of the 2,334,823 shares subscribed for by the Investor under the fourth tranche, the Investor has paid SEK 5,000,000, corresponding to 772,797 shares, which has been registered with the Swedish Companies Registration Office. Under the four tranches of the Investment Agreement, the Investor has undertaken to invest a total of approximately SEK 30.2 million in the Company in exchange for 4,669,647 new shares. Full payment was not received by the deadline of 28 August 2026 in respect of the remaining 1,562,026 shares, corresponding to approximately SEK 10.1 million.
The Company considers that there is no legal basis under the Investment Agreement for the Investor to withhold payment, and that the Board's resolution to carry out the Company's ongoing rights issue of approximately SEK 33.3 million, announced on 25 August 2026 (the "Rights Issue"), has been made in accordance with the Board's obligations and is not in breach of the Investment Agreement.
The Rights Issue represents the appropriate path forward to secure OncoZenge’s capital needs well beyond the readout of the Company's European phase III trial, as previously communicated, irrespective of whether the fourth tranche is paid in full.