Kuros announces final result of capital increase – total gross proceeds of CHF 18.6 million raised

Schlieren (Zurich), Switzerland, October 20, 2020 – Kuros Biosciences (SIX: KURN) (the Company or Kuros) announces the final number of shares placed and gross proceeds raised in the capital increase first announced on October 5, 2020, in which a total of 10,341,432 newly registered shares of Kuros with a nominal value of CHF 1.00 each were placed at an offer price of CHF 1.80 per share in the Rights Offering, the Share Placement and to the Investor.

As previously announced, Kuros obtained on October 14, 2020 after market close a binding commitment from Optiverder B.V., beneficially owned by Mr. C.A.C.M. Oomen, Delft, The Netherlands (the Investor) to fully exercise all subscription rights allocated to the Investor in the Rights Offering and to purchase 1,915,203 Offered Shares at the subscription price of CHF 1.80 per Offered Share in the Share Offering for an aggregate amount of CHF 3,447,365. Given that investor demand in the Share Offering was sufficient to place all Offered Shares in respect of which Rights have not been exercised with investors other than the Investor, the Company has decided to supplement the Offering by an additional tranche of 1,915,203 additional shares (the Additional Shares) and to allocate all Additional Shares to the Investor due to the Investor’s early binding order, the size of its order and the signing of a lock-up of 90 days after the First Day of Trading by the Investor. The Additional Shares will be sourced from the Company’s existing authorized share capital under the exclusion of subscription rights of existing shareholders.

In the Share Placement, 4,192,530 newly registered shares for which subscription rights were not exercised were placed to eligible institutional investors or others. Combined with the 4,233,699 newly registered shares, which were validly subscribed for in the rights offering and the 1,915,203 newly registered shares purchased by the Investor the total number of new registered shares placed at the offer price of CHF 1.80 per share amounts to 10,341,432. Total gross proceeds raised in the capital increase amount to CHF 18.6 million.

As a result of the capital increase, Kuros’ share capital will increase from CHF 22,469,946 to CHF 32,811,378, divided into 32,811,378 registered shares with a nominal value of CHF 1.00 each.

The Company intends to use the net proceeds to accelerate and advance the commercial roll-out of MagnetOs which, based on current performance, is expected to become cash flow positive for the Company by the end of 2022. The net proceeds shall also allow for further clinical development of Fibrin-PTH, which targets a substantial clinical need in orthopedics and neurosurgery and represents a significant potential commercial opportunity. This includes completion of the STRUCTURE clinical Phase 2 study with the first data expected to be available by early 2022, comparing Fibrin-PTH versus local autograft in spine fusion, as well as preparations for Phase 3 clinical development.

The listing and first day of trading of the new registered shares on the SIX Swiss Exchange and the delivery of the newly registered shares against payment of the offer price are expected to take place on October 23, 2020.