Faron Pharmaceuticals Ltd: Convertible bond amortization payment deferred by mutual agreement with HCM

Faron Pharmaceuticals Ltd | Company announcement | September 30, 2026 at 09:00:00 EEST

Turku, Finland – Faron Pharmaceuticals Ltd. (AIM: FARN, First North: FARON), a clinical-stage biopharmaceutical company developing novel immunotherapies, announces that the Company and Heights Capital Management, Inc. (“HCM”) have mutually agreed to defer the amortisation payment of the First and Second Tranche Bonds (as defined below) scheduled for 2 October 2026.

The Company announced on 3 April 2025 that it had entered into a convertible bond arrangement for up to EUR 35 million with an entity managed by HCM and resolved upon the issuance of amortising senior unsecured convertible bonds with an aggregated principal amount of EUR 15 million (the “First Tranche Bonds”) due 2 April 2028 to HCM, convertible into new and/or existing shares in the Company (the “Shares”). On 11 December 2025 the Company announced that it had resolved upon the issuance of a second tranche of convertible bonds amounting to EUR 10 million (the “Second Tranche Bonds”) due 2 December 2028, to HCM, convertible into new and/or existing Shares in the Company.

The deferred amortisation amounts to EUR 840,000 for the First Tranche Bonds and EUR 560,000 for the Second Tranche Bonds, EUR 1,400,000 in total (the "Deferred Amount"). The Deferred Amount will be due on the final maturity date of the respective tranche, being 2 April 2028 for the First Tranche Bonds and 2 December 2028 for the Second Tranche Bonds.

The Company and HCM have also agreed to defer the payment of the interest amounts otherwise due on 2 October 2026 (being EUR 63,000 in respect of the First Tranche Bonds and EUR 98,000 in respect of the Second Tranche Bonds) until the next interest payment date, scheduled for 2 December 2026. No interest will accrue on the deferred interest.

All other terms and conditions of the First and Second Tranche Bonds remain unchanged.

"We appreciate the continued support of Heights Capital Management and value our long-term partnership. This mutually agreed deferral limits near-term dilution for our shareholders and gives us additional flexibility as we continue to advance bexmarilimab. All other terms of the bonds remain unchanged," says Jurriaan Dekkers, CFO of Faron.

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About Faron Pharmaceuticals Ltd

Faron (AIM: FARN, First North: FARON) is a global, clinical-stage biopharmaceutical company, focused on tackling cancers via novel immunotherapies. Its mission is to bring the promise of immunotherapy to a broader population by uncovering novel ways to control and harness the power of the immune system. The Company’s lead asset is bexmarilimab, a novel anti-Clever-1 humanized antibody, with the potential to remove immunosuppression of cancers through reprogramming myeloid cell function. Bexmarilimab is being investigated in Phase I/II clinical trials as a potential therapy for patients with hematological cancers in combination with other standard treatments. Further information is available at www.faron.com.

Forward-Looking Statements

Certain statements in this announcement are, or may be deemed to be, forward-looking statements. Forward looking statements are identified by their use of terms and phrases such as ”believe”, ”could”, “should”, “expect”, “hope”, “seek”, ”envisage”, ”estimate”, ”intend”, ”may”, ”plan”, ”potentially”, ”will” or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.

A number of factors could cause actual results to differ materially from the results and expectations discussed in the forward-looking statements, many of which are beyond the control of the Company. In addition, other factors which could cause actual results to differ materially include the ability of the Company to successfully license its programs within the anticipated timeframe or at all, risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets or other sources of funding, reliance on key personnel, uninsured and underinsured losses and other factors. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Subject to any continuing obligations under applicable law or any relevant AIM Rule requirements, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.