Wissenschaft Forschung Labor

Regulatory News:

LinkMed (STO:LMED):

• LinkMed?s Board of Directors has resolved to acquire an additional 50.8 percent of AbSorber. A total of 9.9 percent of the shares in AbSorber will be acquired through an issue in kind and the remaining 40.9 percent of the shares will be acquired through a cash payment of SEK 58 million. Following the acquisition LinkMed will own 93.8 percent of AbSorber, which thereafter will be included in the LinkMed group as a subsidiary.
• LinkMed?s Board of Directors has furthermore resolved to carry out a right issue of convertibles with preferential rights for existing shareholders of a maximum value of SEK 84.9 million. The decision is supported by the mandate given to the Board by shareholders at the company?s Annual General Meeting on April 22, 2009.
• The rights issue is secured by subscription undertakings and guarantee commitments from LinkMed?s two largest shareholders Mohammed Al Amoudi and FastPartner. Issue proceeds will primarily be used to finance the cash acquisition of shares in AbSorber. The issue will make it possible for LinkMed to continue to build a profitable growth company of key importance in the transplantation sector. Furthermore, it will secure that LinkMed has adequate financial resources to pay the final additional purchase price for Olerup SSP and enable the company to continue to support and invest in LinkMed?s other portfolio companies.

Background and reasons

In 2008, LinkMed acquired the very profitable transplantation sector company Olerup SSP. In conjunction with the acquisition LinkMed deemed that there were significant synergies between Olerup SSP and LinkMed?s associated company AbSorber. The companies? products complement each other well and in the long term a joint organization coordinating the resources of both companies may be formed.

In the second quarter 2009 the opportunity arose to acquire the distribution rights of Olerup SSP?s products from Qiagen GmbH. To this end Olerup International was formed, of which LinkMed currently owns 25 percent. Today, Olerup International is responsible for sales and distribution of all Olerup SSP and AbSorber products.

By now acquiring 50.8 percent of AbSorber from Kon¬centra Holding and associate professor Jan Holgersson, LinkMed has taken another important step in linking its different companies in the transplantation sector together.

Of the issue proceeds of a maximum of SEK 84.9 million before issue costs, SEK 58 million will be used to pay the purchase sum of the acquired shares in AbSorber. The remaining amount will be used to secure that LinkMed has adequate financial resources to pay the final additional purchase price for Olerup SSP of SEK 20 million in 2010 and continue to support and invest in LinkMed?s other portfolio companies.

?It is extremely gratifying that we now have the opportunity to increase our ownership stake in AbSorber and thereby can take a big step forward in the formation of a leading global player in the transplantation matching with a strong cash flow and great growth potential,? comments LinkMed?s CEO Ingemar Lagerlöf.

Issue in kind to acquire shares in AbSorber

LinkMed?s Board has resolved to acquire shares equivalent to 9.9 percent of the shares in AbSorber from the company?s founder Jan Holgersson in return for payment in the form of 492,034 newly issued shares in LinkMed. The issue is being carried out in derogation from shareholders preferential rights and with the support of the mandate given to the Board of Directors by shareholders at the Annual General Meeting on April 22, 2009. The decision means that the company?s share capital will increase from SEK 16,479,582 to SEK 19,971,616. The new shares were issued at a share price of SEK 28.56 per share. The subscription price for the new shares is the volume weighted average share price in LinkMed over the last five trading days. The newly issued shares entitle the holder to subscribe to the Rights Issue. The number of outstanding shares in LinkMed will thereby increase from 16,479,582 till 16,971,616. Acquisition of AbSorber shares from Koncentra Holding LinkMed?s Board has furthermore resolved to acquire an additional 40.9 percent of shares in AbSorber from Koncentra Holding. A cash payment of SEK 58 million will be made for these shares. The deal will be completed on November 30, 2009.

Rights Issue of convertibles

LinkMed?s Board of Directors has resolved to carry out a new issue of convertibles with preferential rights for existing shareholders of a maximum value of SEK 84.9 million. The decision is supported by the mandate given to the Board by shareholders at the Annual General Meeting on April 22, 2009.

Each existing share in LinkMed entitles the holder to one (1) subscription right, and six (6) subscription rights entitle the holder to subscribe to (1) convertible instrument with preferential rights. In addition, subscriptions may also be submitted without preferential rights. November 30, 2009 is the record day for the Rights Issue of convertibles ("Rights Issue?). Shareholders who are registered in the Shareholder Register held by Euroclear Sweden AB (previously VPC AB) on this date will receive subscription rights that entitle them to participate in the Rights Issue. The subscription period extends from December 2 to December 16, 2009. Subscription shall be made by simultaneous cash payment during the subscription period. Please note that subscription rights which holders do not intend to exercise must be sold by December 11, 2009 in order not to become worthless.

Application for subscription without preferential rights shall be made to Remium no later than December 16, 2009 and be paid using the contract note sent out.

On the condition that the Rights Issue is fully subscribed and that all convertibles are converted to shares, the number of shares in LinkMed will increase by 2,828,602 shares, 16,971,616 till 19,800,218 shares, corresponding to an increase of 16,7 percent.

LinkMed?s two largest shareholders have undertaken to subscribe to convertibles from the Rights Issue equivalent to their current pro-rata shares of the Rights Issue, which together corresponds to approximately 38.9 percent of the issue proceeds. These shareholders are Mohammed Al Amoudi and FastPartner AB (publ). Furthermore, both parties have guaranteed to subscribe for remaining convertibles equivalent to 61.1 percent of issue proceeds. Subscription undertakings and guarantee commitments correspond to the total issue amount.

Preliminary time schedule for the Rights Issue
November 26, 2009 First day of trading in shares, excluding the right to participate in the Rights Issue.
November 30, 2009 Anticipated publishing date of prospectus.
November 30, 2009 Record date, meaning that shareholders who are registered in the company?s shareholder register on this date will receive subscription rights that provide entitlement to participation in the Rights Issue.
December 2-11, 2009 Trading in subscription rights. December 2-16, 2009 Subscription period.
December 18, 2009 Release of results of Rights Issue. Mid-January 2010 Rights Issue is completed.

Terms of the convertible loan

• The loan is due on December 15, 2012.
• The loan carries an annual interest of 6 percent.
• Interest is paid out on December 15 every year (starting 2010).
• The conversion rate is SEK 30.
• Conversion to shares can be made on an ongoing basis until November 30, 2012 with quarterly registration at the Swedish Companies Registration Office.
• LinkMed will apply to NASDAQ OMX Stockholm for the listing of the convertibles.

Financial and legal advisors for the Rights Issue

Remium is LinkMed?s financial advisor and Advokatfirman Lindahl is the company?s legal advisor.

Visit LinkMed?s website: www.linkmed.se

This press release contains such information that LinkMed is required to disclose in accordance with the Swedish Financial Instruments Trading Act (1991:980) and/or Swedish Securities Market Legislation (2007:528). This information was submitted for publication at (approximately) 14:15 CET on November 11, 2009.

LinkMed develops life science companies in collaboration with innovators and other financiers. By contributing management and capital, LinkMed has created a portfolio of thirteen companies, four in drug development and biotechnology and nine in diagnostics and medical technology. The company?s principal shareholders are Mohammed Al Amoudi, FastPartner AB (publ), and Mannersons Fastighets AB. LinkMed is listed on the NASDAQ OMX Nordic Exchange in the Small Cap section (ticker: LMED).

IMPORTANT INFORMATION
The information in this press release is not intended for distribution, publication or disclosure, directly or indirectly, in or into the United States, Canada, Australia, Hong Kong, Japan or New Zealand. The information in this press release shall not be regarded as an offer to sell shares or a request to acquire shares. Nor will any sale of the securities referred to herein be permissible in any jurisdiction where such an offer, request or sale would not be lawful without registration or applicable exemption from registration pursuant to the securities legislation of such a jurisdiction. A prospectus concerning the Rights Issue presented in this press release and the subsequent listing of new shares on NASDAQ OMX Stockholm will be prepared and submitted to the Swedish Financial Supervisory Authority for approval and registration.

The information in this press release does not constitute an offering of LinkMed securities in the U.S.; nor will the securities be offered or sold in the absence of registration or exemption from registration pursuant to the American Securities Act of 1933, as well as the rules and regulations under this act. There is no intention of registering any part of an offering of LinkMed securities in the US or of implementing a public offering of shares in the US.

The information in this press release may not be forwarded or distributed to any third party; nor may it be reproduced in any manner. It is not permissible to forward, distribute, reproduce or disclose this information, in full or in part. Failure to observe these directives could constitute a breach of the American Securities Act of 1933 or applicable laws in other jurisdictions.

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