Karolinska Development announces the final result of the directed share issue to the Company's convertible loan holders

STOCKHOLM, SWEDEN – December 18, 2019. Karolinska Development AB (Nasdaq Stockholm: KDEV) (“Karolinska Development” or the “Company”) announces the result of the final partial registration in the directed share issue of series B shares to the holders of the Company’s 2015/2019 convertible loan (the “Directed Issue”). Holders of the convertible have subscribed for 32,476,086 class B shares in the Directed Issue.

The result of the Directed Issue

The subscription period for the Directed Issue ended on December 16, 2019. Holders of the convertible have subscribed for 32,476,086 class B shares through the final partial registration in the Directed Issue, equivalent to SEK 85.9 millions of the Company’s convertible loan in nominal terms.

As a result of the final partial registration in the Directed Issue, the share capital in Karolinska Development will increase by SEK 324,760.86 to SEK 1,756,654.09 and the total number of shares will increase by 32,476,086 shares to 175,665,409 shares after the Directed Issue is partially registered with the Swedish Company Registration Office.

Convertible loan holders which have subscribed for shares in the final partial registration will receive their shares around December 23, 2019.

Following the final partial registration, SEK 13.6 million of the Company's convertible loan in nominal terms is outstanding, SEK 19.7 million including accrued interest until December 31, 2019. This amount will be repaid to the holders of the convertible around December 31, 2019.

Advisers

DNB Markets is acting as financial adviser and Cirio Advokatbyrå as legal adviser to Karolinska Development in connection with the Directed 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This press release may not be published, distributed or made public, directly or indirectly, in or into the US, Australia, Hong Kong, Japan, Canada, New Zeeland, Switzerland, Singapore, South Africa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 and deputy CEO, 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 in the Nordic region 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 11.30 CET on December 18, 2019.

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