Aerocrine Completes USD 50 Million Debt and Equity Financing

  Aerocrine Completes USD 50 Million Debt and Equity Financing

Business Wire

SOLNA, Sweden -- April 30, 2013

Regulatory News:

Aerocrine AB (NASDAQ OMX Nordic Exchange: AERO) (STO:AERO-B) (“Aerocrine”)
announces that it has completed a financing with an affiliate of the U.S.
investment firm OrbiMed Advisors LLC (“OrbiMed”) and with Novo A/S (“Novo”)
consisting of USD 35 million of debt. Aerocrine also raises SEK 95 million
(approx. USD 15 million) of equity from OrbiMed and a number of institutional
investors through a directed share issue. Aerocrine will utilize the proceeds
to continue funding growth and expanded commercialization of its current
product as well as its pipeline of new devices for diagnosis and management of
airway inflammation. Based on its long term plan, the company believes that
this funding will be sufficient to reach positive cash flow and profitability.

“Aerocrine has worked closely with OrbiMed over the last several months to
craft a financing structure that funds the company through its next stages of
growth and towards profitability”, said Scott Myers, CEO, Aerocrine.

“We are very pleased to partner with Aerocrine and offer a minimally dilutive
capital solution to help the company continue to deliver valuable respiratory
diagnostic products” said Tadd Wessel, a Managing Director at OrbiMed.
“Aerocrine has made substantial progress with the commercialization of NIOX®
MINO® and we look forward to working with Scott and his team to help the
company achieve its full potential”, added Matthew Rizzo, also a Managing
Director at OrbiMed.

Aerocrine has been focusing its commercialization efforts in the United States
and other key international markets. These efforts require sustained funding
to support this expansion. The combination of debt and equity should provide a
proper capital structure for a growth company like Aerocrine.

ABG Sundal Collier acted as sole lead manager and bookrunner in the equity
financing. Mannheimer Swartling and Reed Smith acted as Aerocrine’s legal
advisers in the financing.

Credit facility

Aerocrine has entered into a senior secured term loan (the “Term Loan”) in the
amount of USD 35 million (approx. SEK 229 million) with OrbiMed and Novo.
OrbiMed is the administrator of the loan and provided USD 25 million with Novo
providing the remaining USD 10 million. The Term Loan matures in seven years.

Directed issue of new shares

As part of the financing, the Board of Aerocrine has resolved, by virtue of
the authorization by the Annual General Meeting on May 3, 2012, to increase
Aerocrine’s share capital by SEK 4,312,500 through a directed issue of
8,625,000 new shares to OrbiMed and a number of other institutional investors
through a book building process. OrbiMed leads the directed issue with a USD 5
million investment (approx. SEK 32 million). The new shares will be issued at
a price of SEK 11.00 per share, providing the company with a total of
approximately SEK 95 million (approx. USD 15 million) before transaction

The reason for the deviation from the shareholders’ preferential rights is to
enable external fund raising for the financing of the company’s operations,
commercialization and development of the company’s products and intellectual
property rights. The subscription price corresponds to a discount of 2.0
percent to the volume weighted average share price on April 29, 2013. The
directed share issue will result in an equity dilution of approximately 5.6
percent after completed issue.

Asthma – a growing health care problem

Asthma is a fast growing health care problem, which is caused by a chronic
inflammation in the airways. Between eight and ten per cent of the world
population suffer from asthma and this number is rising. World-wide, deaths
from this condition have reached over 180,000 annually according to statistics
from WHO.

About Aerocrine

Aerocrine is a medical products company focused on improved management and
care of patients with inflammatory airway diseases such as Asthma. Aerocrine
is a leader in this sector. Aerocrine markets NIOX® MINO®, which enables fast
and reliable point-of-care measurement of airway inflammation. This product
plays a critical role in more effective diagnosis, treatment and follow-up of
patients affected with inflammatory airway diseases. Aerocrine is based in
Sweden with subsidiaries in the US, Germany, Switzerland and the UK. Aerocrine
shares have been listed on the Stockholm Stock Exchange since 2007
(AERO-B.ST). For more information please visit and

About OrbiMed

OrbiMed is a leading investment firm dedicated exclusively to the healthcare
sector, with approximately USD 7 billion in assets under management. OrbiMed
invests globally across the spectrum of healthcare companies, from venture
capital start-ups to large multinational companies. OrbiMed’s team of over 60
professionals manages a series of private equity funds, public equity funds,
royalty and debt funds, and other investment vehicles.

About Novo A/S

Novo A/S is a Danish private limited liability company wholly owned by the
Novo Nordisk Foundation, and the holding company of the Novo Group and as such
the majority shareholder in the publicly listed companies Novo Nordisk A/S and
Novozymes A/S. Novo was established in 1999 prior to the demerger of Novo
Nordisk A/S, where Novozymes A/S was established as a stand-alone publicly
listed company. Novo's purpose and objectives are to manage the Foundation's
financial assets and to ensure the Novo Nordisk Foundation sufficient
dividends to cover its grant obligations for medical and scientific research
etc. in Scandinavia.

Aerocrine may be required to disclose the information provided herein pursuant
to the Securities Markets Act and/or the Financial Instruments Trading Act.
The information was submitted for publication at 08:30 am on April 30, 2013.

This information was brought to you by Cision


Aerocrine AB
Scott Myers, Chief Executive Officer
Phone +46768 788379, +1 970368 0336
Michael Colerus, CFO
Phone +46 8629 07 85
OrbiMed Advisors LLC
Tadd Wessel, Managing Director
Phone +1 212 739 6400
Matthew Rizzo, Managing Director
Phone +1 212 739 6400
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