Targovax announces financing of up to NOK 300m over three years to advance its clinical cancer programs & pre-clinical circular RNA platform

16 Feb 2023 06:55 CET

· The financing will support initiation of the ONCOS-102 melanoma phase 2 and
TG01 mutant RAS clinical trials and in vivo PoC studies for the ground-breaking
circRNA program
· The convertible bond facility with London-based Atlas Capital Markets
provides a secured and flexible source of capital to advance all of Targovax´s
three R&D pillars
· Additional actions are being pursued in parallel to unlock the full
potential of Targovax's emerging circRNA platform

Oslo, Norway, 16 February 2023 - Targovax ASA (OSE: TRVX), a clinical-stage
immuno-oncology company developing immune activators to target solid tumors,
today announces that it has agreed the terms and conditions for a convertible
bond facility with Atlas Special Opportunities ("Atlas") which will secure
financing of up to gross NOK 300 million over three years. The agreement will be
subject to approval by an extraordinary general meeting (EGM) of Targovax to be
held in March 2023.

The financing will enable Targovax to drive long-term shareholder value by
supporting progress for its three R&D pillars, including:

· Dosing the first patients in the ONCOS-102 phase 2 trial in PD-1 resistant
melanoma at prestigious cancer centers in the USA and Europe
· Generation of in vivo proof-of-concept data in multiple settings for
Targovax´s unique circRNA program, an area of rapidly growing interest among big
pharma and biotech
· Supporting two clinical trials with the enhanced mutant RAS vaccine TG01 led
by major academic centers in Norway and the USA

"This convertible bond financing from Atlas will provide secured access to
significant capital to drive our portfolio of innovative R&D programs forward
over the next three years. In a challenging funding climate for the global life
sciences sector, the flexible structure allows us to control the amount and
timing of financing, enabling us to generate data and build shareholder value as
we progress. We evaluated a range of financing alternatives and credit facility
solutions, and selected Atlas as a creative and experienced partner, committed
to helping us achieve our goals. In parallel we are pursuing additional
strategic opportunities to fully unlock the value and potential of our circRNA
platform, which we are rapidly advancing at the Karolinska Institute in
Stockholm" said Erik Digman Wiklund, CEO of Targovax.

"We have selected to partner with Targovax as we have recognized the strong
potential of its lead clinical candidate ONCOS-102, complemented by the cutting
edge circRNA pipeline program where we see significant future platform
potential. Atlas has a long track record of supporting European biotech
companies with innovative financing solutions during periods of high capital
need. Our aim is to be a reliable long-term supporter for our biotech partners
to deliver important scientific progress, and we always seek to align our
interests with the development needs of the company, as well as the interests of
existing shareholders" said Mustapha Raddi, Founder, Managing Partner of Atlas
Capital Markets.

The financing will be made available to Targovax through an initial tranche of
bonds in the total nominal value of NOK 37.5m upon EGM approval of the
agreement, followed by a second tranche of NOK 30m and subsequent tranches of
NOK 25m up to the total nominal value of NOK 300m, with at least three months
between tranches. Targovax has full control over when and how many tranches are
called upon over the 3-year agreement period, thereby ensuring flexible and
predictable access to capital as required.

The convertible bonds will be issued at 92 percent of nominal value and thereby
provide Targovax with a total of up to NOK 276 million in net capital. The bonds
will not carry any interest and can be converted into shares at the discretion
of Atlas, at a price determined as 100 percent of the average volume weighted
share price (VWAP) of three of the last 15 trading days preceding the bond
conversion request by Atlas. After conversion, Atlas may sell the Targovax
shares in the market subject to certain pre-defined restrictions. Targovax
retains the right to repurchase unconverted bonds at any time at 110 percent of
nominal value.

Targovax will provide further information about the convertible bond financing
in the company's Q4 presentation on 16 February 2023, and welcome questions in
the Q&A-session of the presentation. An EGM notice will be issued in due time
with detailed information about the agreement, financial structure and
commercial terms.

Atlas Capital Markets ("ACM") is an investment fund based in London, founded in
2012 by Mustapha Raddi. In 2016 Atlas Capital Markets created joint venture
investment vehicles Atlas Special Opportunities LLC ("ASO") and Arena Structured
Private Investment ("ASPI") with Arena Investors LP, a credit specialist asset
manager based out of New York with $4 billion under management. Since 2022 ACM
has signed a co-investment agreement with the international investment bank
Macquarie IM.

ACM's management has decades of experience and has executed more than 80
transactions across the world successfully.

Contact information, Atlas Capital Markets
sam@atlascapitalm.com  (sam@atlascapitalm.com )
www.atlascapitalmarkets.com

For further information, please contact:
Erik Digman Wiklund, CEO
Phone: +47 413 33 536
Email: erik.wiklund@targovax.com

Renate Birkeli, Investor Relations
Phone: +47 922 61 624
Email: renate.birkeli@targovax.com

Media enquires:
Andreas Tinglum - Corporate Communications (Norway)
Phone: +47 9300 1773
Email: andreas.tinglum@corpcom.no

About Targovax

Activating the patient's immune system to fight cancer

Targovax (OSE:TRVX) is a clinical stage immuno-oncology company developing
immune activators to target hard-to-treat solid tumors. Targovax's focus is to
activate the patient's immune system to fight cancer, and to bring benefit to
cancer patients with few available treatment alternatives. Targovax is
developing its product candidates in different cancer indications, including
melanoma, mesothelioma, multiple myeloma and pancreatic cancer.

Targovax's lead clinical candidate, ONCOS-102, is a genetically modified
oncolytic adenovirus, which has been engineered to selectively infect cancer
cells and activate the immune system against the tumor. ONCOS-102 has
demonstrated a favorable efficacy, immunological and safety profile in several
indications, both as monotherapy and in combinations, and ONCOS-102 is
progressing into a randomized phase 2 trial in melanoma patients resistant to PD
-1 checkpoint inhibitor treatment.

Targovax has also established a cutting-edge circular RNA (circRNA) program with
the intent to develop next generation RNA therapeutics for various applications,
building on clinical experience and deep mechanistic insights from its first
generation products.  In addition, Targovax has a KRAS immunotherapy program,
with lead candidate TG01 due to enter clinical trials in an enhanced format in
pancreatic cancer and multiple myeloma during early 2023.  This provides
Targovax with a rich pipeline of innovative future therapeutic candidates to
follow ONCOS-102.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to disclosure requirements pursuant to
Section 5-12 of the Norwegian Securities Trading Act. The stock exchange
announcement was published by Renate Birkeli, Investor Relations, Targovax ASA.

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