Translation: Original published in Finnish on 3/11/2026 at 7:13 am EET.

Faron announced the terms of its 40 MEUR rights offering on Tuesday. The subscription price of EUR 0.50 for the offering is in line with our expectations, but the net proceeds will be below our expectations. The company announced the positive news that the offering is fully covered by subscription commitments and guarantees. This removes the uncertainty related to the success of the offering. According to the company, the funds will suffice until November 2027, which should enable the readout of responses from bexmarilimab's Phase II HR-MDS trial. The terms are largely in line with our expectations, so we do not see significant pressure for forecast changes. The decrease in financing risk has a positive impact on our view, but this is balanced by lower net proceeds from the offering than we expected. We will update our analysis once the subscription rights have detached.

Full subscription is guaranteed, terms are in line with our expectations

Faron aims to raise 40 MEUR in gross proceeds through an 80 million share issue. The subscription price of EUR 0.50 corresponds to a discount of ~7.5% compared to Monday's closing price. Current shareholders will receive one subscription right for each share held, and 13 subscription rights entitle the holder to subscribe for 9 new shares. Subscription commitments cover around 12 MEUR, and the remaining ~28 MEUR is secured by guarantees. The guarantees practically eliminate the risk associated with the completion of the offering, which is, of course, good news. As a result of the offering, the company's number of shares will increase to around 200 million, representing a significant increase of about 67% in the number of shares.

Funding secures the next readout

The offering will raise net proceeds of around 32.8 MEUR. This amount is lower than our previous estimate (37–38 MEUR). The company intends to primarily use the funds for a randomized Phase II trial of bexmarilimab in 90 high-risk MDS (HR-MDS) patients. Funding sufficient until November 2027 should cover the readout of responses, based on which decisions can be made regarding the appropriate dosage for the final trial phase and potentially submit an accelerated marketing authorization application. We believe the timeline for response readout is quite tight. In the BEXMAB trial, the recruitment and response readout for 21 patients took roughly one year. The current plan is to recruit 90 patients, and since the trial has not yet started, we consider schedule delays possible.

In addition to HR-MDS, the funds will be used to support a maximum of five investigator-initiated trials (IITs) to investigate the efficacy of bexmarilimab in lung cancer, melanoma, and AML, among others. These studies are important for gathering data on the drug candidate's potential for broader applications. The funding now being raised gives the company breathing room to advance the HR-MDS program toward its next value-creating milestones. We estimate that the company has the best chance of entering into the partnership agreement expected by the market once the Phase II results are available, in order to finance the final phase of the trial.