Karolinska Development extends the subscription period in the directed share issue to holders of the Company’s convertible loan

STOCKHOLM, SWEDEN – 19 July 2019. On 29 May 2019 Karolinska Development AB (Nasdaq Stockholm: KDEV) (“Karolinska Development” or the “Company”) announced that the Board of Directors of the Company resolved, subject to the approval of the annual general meeting, on a directed issue of series B shares to the holders of the Company’s 2015/2019 convertible loan (the “Directed share issue”). The Board of Directors resolution was approved at the Annual General Meeting on 28 June 2019 and the Board of Directors of the Company has now resolved to extend the subscription period for the Directed share issue from 8 July to 2 August 2019.

The Board of Directors of the Company has resolved to extend the subscription period for the Directed Share Issue from 8 July to 2 August 2019. Disclosure of the result of the offer is expected on or about the 7 August 2019.

The reason for the extended subscription period is due to ongoing negotiations with larger institutional convertible loan holders in order to fulfil the condition of at least 95 percent participation in the Directed share issue. Sino Biopharma's subscription undertaking continues to be conditional on convertible loan holders representing at least 95 percent of the convertible loan committing to set-off their convertible loan holdings in the Directed share issue.

For more information on the Directed share issue, please refer to the Company’s press releases issued on 29 May, 26 June, 28 June and 5 July 2019.

Financial and legal advisers

DNB Markets is acting as financial adviser and Cirio Advokatbyrå as legal adviser to Karolinska Development in connection with the Directed share issue.

IMPORTANCE NOTICE

Publication or distribution of this press release in certain jurisdictions may be subject to restrictions according to law and persons in jurisdictions where this press release has been made public or distributed should inform themselves and follow such legal restrictions. This press release does not contain and does not constitute an invitation or an offer to acquire, subscribe or otherwise trade in shares or other securities in Karolinska Development.

This press release may not be published, distributed or made public, directly or indirectly, in or into the US, Australia, Hong Kong, Japan, Canada, New Zeeland, Switzerland, Singapore, South Africa or in any other jurisdiction where such action, completely or partially, is subject to legal restrictions. The information in this press release may not be redistributed, reproduced or passed on in ways that conflict with applicable restrictions. Failure to comply with these restrictions may constitute a violation of the United States Securities Act of 1933 or applicable laws of other jurisdictions.

For more information, please contact:

Viktor Drvota, CEO, Karolinska Development AB

Phone: +46 73 982 52 02, e-mail:

Fredrik Järrsten, CFO, Karolinska Development AB

Phone: +46 70 496 46 28, e-mail:

TO THE EDITORS

About Karolinska Development AB



Karolinska Development AB (Nasdaq Stockholm: KDEV) is a Nordic life sciences investment company. The company focuses on identifying breakthrough medical innovations that are developed by entrepreneurs and leadership teams. The Company invests in the creation and growth of companies that advance these assets into commercial products that are designed to make a difference to patients' lives while providing an attractive return on investment to shareholders.

Karolinska Development has access to world-class medical innovations at the Karolinska Institutet and other leading universities and research institutes in the Nordic region. The Company aims to build companies around scientists who are leaders in their fields, supported by experienced management teams and advisers, and co-funded by specialist international investors, to provide the greatest chance of success.

Karolinska Development has established a portfolio of nine companies targeting opportunities in innovative treatment for life-threatening or serious debilitating diseases.

The Company is led by an entrepreneurial team of investment professionals with a proven track record as company builders and with access to a strong global network.

For more information: .

This information is information that Karolinska Development AB (publ) (Nasdaq Stockholm: KDEV) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Viktor Drvota, at 08.00 CET on 19 July 2019.

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