Circio announces financing that secures cash runway for twelve months

29 May 2024 07:00 CEST

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OF ANY OF THE SECURITIES DESCRIBED HEREIN.

· Circio plans to raise up to approx. NOK 52 million in a rights issue at NOK
2.5 subscription price, with 1:1 warrant coverage
· Certain existing and new shareholders have pre-subscribed for NOK 9.15
million, including NOK 1.77 million from members of Circio´s Board and
management
· Atlas Capital Markets has provided a financing commitment to fund the
company´s operations until the end of June 2025, if sufficient funds are not
raised through the rights issue
· The financing will enable delivery of key pre-clinical milestones for the
circVec circular RNA platform, with the aim to enter a first commercial
partnership
· Management will host a live webcast to present the financing structure at
15:00 CEST on 29 May 2024

Oslo, Norway 29 May 2024 - Circio Holding ASA (OSE: CRNA, "Circio"), a
biotechnology company developing next generation circular RNA vector technology
for gene therapy, today announces a proposed financing solution through a rights
issue and a parallel financing commitment from Atlas Capital markets that will
provide the company with a twelve-month cash runway. The financing will be
pending approval by Annual General Meeting, to be held on or about 19 June 2024.

"The board strongly believes in the potential of Circio´s unique circVec
platform, and this financing will provide the company with the resources to
validate the significant advantage of the technology in gene therapy," said
Damian Marron, Chairman of Circio. "With twelve months runway, Circio will have
time to reach important R&D milestones and will aim to achieve its first
business development deal, thereby delivering value to our shareholders."

Circio intends to raise up to NOK 52m in gross proceeds in the rights issue at
subscription price of NOK 2.5. Subscribed shares will come with attached
warrants in a 1:1 ratio, with exercise window in December 2024 at a 30% discount
to VWAP (floor of NOK 0.6). Certain existing and new shareholders have pre
-committed to subscribe for approx. NOK 9.15m in the rights issue, including NOK
1.77m from Circio´s Board and management. Atlas Capital Markets will guarantee
for NOK 10m under the existing convertible bond facility, which will be offset
1:1 against new subscriptions. As such, the minimum total gross proceeds raised
by the financing structure will be NOK 19.15 million.

To reduce the convertible bond exposure for the company, Atlas will also convert
NOK 15 million (30 bonds of NOK 500,000) at the subscription price of NOK 2.5.
In addition, Atlas has provided a financing commitment to cover the company´s
operations until the end of June 2025 under the existing convertible bond
facility, capped upwards to NOK 48m. This source of funding will be available at
the company´s discretion on a need-to basis and will only be utilized if no
other funding sources are available at the time.

"Circio is very pleased to present a financing solution that secures the
company´s operations for the next twelve months with support from several
existing shareholders. We appreciate the flexibility shown by Atlas to offer a
funding commitment that provides important predictability, whilst at the same
time enabling new and existing shareholders to participate and thereby reduce
the need to draw on the convertible facility and allow us to close it in the
future" said Dr. Erik Digman Wiklund, CEO at Circio. "The financing will enable
Circio to develop the lead program in AATD towards selection of a lead
therapeutic candidate by the middle of next year. In parallel, Circio will
continue to improve and expand the circVec platform, which will open
opportunities for multiple future revenue-generating partnerships both in the
short- and long-term."

Redeye AB is acting as financial advisor to Circio and sole bookrunner in the
transaction and Advokatfirmaet Thommessen AS is acting as legal advisor.

Circio will host a webcast at 15:00 CEST on 29 May 2024 to present the financing
structure in more detail and answer any associated questions. Link to webcast:
Join Teams meeting (https://teams.microsoft.com/l/meetup
-join/19%3ameeting_ZGE0ZjRhOWEtMzAzNS00NWNhLThlNDktZGMzNDY1ODYwNDky%40thread.v2/
0
?context=%7b%22Tid%22%3a%2266b0661a-3ec3-48a8-a966
-5b0cce82b3fe%22%2c%22Oid%22%3a%223f5f84b0-5521-4c04-bd8a-e185546abe04%22%7d)

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

Lubor Gaal, CFO
Phone: +34 683343811
Email: lubor.gaal@circio.com

About Circio

Building next generation RNA therapeutics

Circio Holding ASA is a biotechnology company developing novel circular RNA gene
therapies and immunotherapy medicines.

Circio has established a unique circular RNA (circRNA) platform for genetic
medicine. The proprietary circVec technology is based on a modular genetic
cassette design for efficient biogenesis of multifunctional circRNA from DNA and
viral vectors, which can be deployed in multiple disease settings. The circVec
platform has demonstrated enhanced and more durable protein expression than
classic mRNA vector systems and has the potential to become the new gold
-standard for DNA and virus-based therapeutics in the future. The circRNA R&D
activities are being conducted by the wholly owned subsidiary Circio AB based at
the Karolinska Institute in Stockholm, Sweden.

In addition, Circio is developing a cancer vaccine, TG01, targeting KRAS driver
mutations. TG01 is currently being tested in three clinical trials: RAS-mutated
pancreatic cancer and lung and non-resectable pancreatic cancer in US, and
multiple myeloma in Norway. These studies are being run through academic
collaborative networks, supported by prestigious research grants from Innovation
Norway and the Norwegian Research Council, creating read-outs and future
optionality for the program at low cost to Circio.

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