Oasmia Pharmaceutical AB (STO:OASM) announced on Thursday the completion of a private placement of a convertible loan amounting to SEK26,000,000 with an interest rate of 8% per year directed to and placed with a limited group of investors and paid in cash (the private placement).

Reportedly, this convertible instrument issue is expected to provide the company with SEK26,000,000 before transaction related costs.

According to the company, this private placement has enabled it to place 26 new convertible instruments with a limited group of investors at a nominal value of SEK1,000,000 per convertible instrument through an accelerated book building procedure.

This convertible loan is issued with the purpose of replacing the company's financing under the company's convertible loan 2017:2 in the total amount of SEK26m, which fell due for payment 18 April 2018.

Payment of this loan amount which is due, under the company's convertible loan 2017:2, will be paid to the convertible loan holders in May 2018 and the interest due was paid in April 2018.

Oasmia Pharmaceutical added that in order to enable the placement, its board of directors has, by virtue of the authorisation granted by the Annual General Meeting held on 25 September, 2017, resolved on a directed issue of a new convertible loan in the amount of SEK 26,000,000.

These convertible instruments have been subscribed at 100% of the nominal amount and the convertible loan bear an interest rate of 8% per year. The conversion rate is based on the closing price of Oasmia's shares on Nasdaq Stockholm on 18 April 2018 with premium and will amount to SEK4.90.

This loan has a term of approximately one year with a maturity date on 22 April 2019, if not converted to shares earlier. The terms of the convertible instruments are based on an accelerated book building procedure on 18 April 2018 and the board of directors has thereby ensured that the terms of the convertible instruments corresponds to fair market standards.

In the event that the convertible loan is fully converted into shares, the number of shares in Oasmia increases by 5,306,122 from 176,406,372 to 181,712,494 and the share capital increases by SEK530,612.20 from SEK 17,640,637.20 to SEK 18,171,249.40.

In the event of a full conversion into shares, the dilution effect will amount to approximately 2.9%.

Oasmia Pharmaceutical AB develops, manufactures, markets and sells new generations of drugs in the field of human and veterinary oncology.

(EUR1.00=SEK10.38)