Analyst Comment

ExpreS2ion Biotech - Intention to carry out rights issue to fully fund Phase 1 trial

By Philip CoombesEquity Research Analyst

Summary

ExpreS2ion Biotech plans a rights issue of approximately SEK 53 million to fund the Phase I trial of its HER2-targeted breast cancer vaccine, ES2B-C001, with the issue secured to about 60% through commitments.
The rights issue, expected to be dilutive, aims to provide the necessary runway to complete the Phase I trial, potentially strengthening the company's position for future partnerships.
ExpreS2ion ended 2025 with SEK 47.6 million in cash and an annual operating cash outflow of SEK 40.9 million, indicating a need for additional funding to sustain operations into mid-to-end 2026.
The company has communicated flexibility in seeking partnerships either after Phase I or Phase II, depending on strategic considerations.

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ExpreS2ion has announced its intention to carry out a rights issue of units of approximately SEK 53 million before transaction costs, with each unit consisting of one new share and one TO 13 warrant exercisable in September 2026 at 70% of the prevailing VWAP. The issue is secured to approximately 60% through subscription and guarantee commitments, with an extraordinary general meeting scheduled for 1 April 2026, subscription period expected 16–30 April, and final terms to be set no later than 6 April based on a TERP discount of at least 35%. Proceeds are primarily earmarked to complete the Phase I dose-escalation (expected mid-2026) and expansion cohort (late 2026) of lead candidate ES2B-C001, its HER2-targeted breast cancer vaccine.

ExpreS2ion ended 2025 with SEK 47.6m in cash against an annual operating cash outflow of SEK 40.9m, implying a runway only into mid-to-end 2026. Our latest HCA one-pager outlined that additional funding was likely required to complete the Phase 1 trial for its lead HER2+ therapeutic breast cancer vaccine asset. With the current market capitalisation of ~SEK 24m (17:30 02/03-2026), the issue is likely to be significantly dilutive for existing shareholders, though successful completion would secure the runway needed to generate the Phase I data package that underpins both the clinical and commercial case for ES2B-C001, and potentially positions the company to negotiate a partnership from a stronger footing. The company has previously communicated flexibility for the timing of seeking partnership after Phase I or after Phase II.

To learn more about ExpreS2ion see the full one-pager and catch up on the latest presentation of the annual 2025 results with ExpreS2ion CEO Bent Fradsen and CFO Keith Alexander.

Link to one-pager: https://www.inderes.dk/research/expres2ion-biotech-one-pager-fremskridt-fortsaetter-for-bade-pipeline-og-partnerdrevne-programmer

Link to FY2025 event: https://www.inderes.dk/videos/expres2ion-biotechnologies-presentation-of-the-2025-full-year-report-and-qanda

Disclaimer: HC Andersen Capital receives payment from ExpreS2ion Biotech for a DigitalIR/Corporate visibility subscription agreement. / Philip Coombes 17:51 02/03-2026

ExpreS2ion is a Danish-based biotech company listed in Sweden. The company develops a portfolio of vaccines for diseases such as COVID-19, influenza, and breast cancer through the use of its non-viral cell-based expression system, ExpreS2, which is recognized for handling protein challenges. ExpreS2ion has developed Expres2, which is a technology platform for efficient and fast non-clinical development and production of complex proteins for new vaccines and diagnostics. The company’s current primary product is the corona vaccine candidate, ABNCoV2 in phase 2, co-developed with its partner, AdaptVac of which ExpreS2ion owns 34%. The vaccine candidate has been licensed to Bavarian Nordic has global commercialization rights and responsibility for further clinical development of the vaccine and is expected to initiate phase 3 testing for the product candidate in the first half of 2022.