Approval of Share Subscriptions Based on Special Rights in connection with Amortisation of the First and Second Tranche Bonds

Turku, Finland – Faron Pharmaceuticals Ltd. (AIM: FARN, First North: FARON), a clinical-stage biopharmaceutical company developing novel immunotherapies, announces that the Company has approved the exercise of 909,517 special rights entitling to 909,517 new Shares, for an aggregate subscription price of EUR 1,549,998.87 in connection with the scheduled amortisation payment of the First Tranche Bonds (as defined below), occurred on 2 February 2026.

The Company has received a scheduled amortised payment notice from the bondholder for an aggregate amortised payment amount (including accrued interest) of EUR 945,000 for First Tranche bonds and EUR 605,000 for Second Tranche Bonds. Therefore, total aggregate amortised payment amount (including accrued interest) is EUR 1,550,000. As the Company has exercised its Share Settlement Option, the subscription price for the Shares subscribed for by the bondholder is EUR 1.7042 per Share, corresponding to 90 per cent of the lowest of (i) the volume weighted average price (“VWAP”) of a Share on the relevant payment date, and (ii) the lowest of the VWAPs of a Share on each of the five consecutive dealing days ending on (and including) the dealing day immediately preceding the relevant payment date. Therefore, the Company has approved the exercise of 909,517 Special Rights entitling to 909,517 new Shares in total, for an aggregate subscription price of EUR 1,549,998.87. Of those Shares 554,512 are used to amortize the First Tranche Bonds (including accrued interest) and 355,005 the Second Trance Bonds (including accrued interest). The subscription price for the Shares subscribed for pursuant to the Special Rights is paid by setting off the Company’s debt to pay relevant amounts due under the First Tranche Bonds and recorded into the reserve for invested unrestricted equity.

Admission and Total Voting Rights

The 909,517 Shares subscribed for and issued are expected to be registered in the Finnish Trade Register on or around 3 February 2026. The Shares will rank pari passu in all respects with the existing shares of the Company once they are registered with the Finnish Trade Register.

The Company will make applications for the admission of the newly issued Shares to trading on Nasdaq First North Growth Market Finland (“First North“) maintained by Nasdaq Helsinki Ltd (“Nasdaq Helsinki“) and on AIM (“AIM“), the market of that name operated by London Stock Exchange plc (the “LSE“) with said admissions expected to become effective and trading to commence on or around 5 February 2026 (the “Admissions”).

Following the issuance, the aggregate number of ordinary shares in the Company is 119,472,660. Shares held in treasury by the Company do not confer a right to dividends or other shareholder rights. Following the registration, the Company will continue to have 3,688,699 shares in treasury (issued by the Company to itself previously on 27 May 2025) and therefore, the total number of voting rights in Faron will be 115,783,961 (the “Number of Shares and Votes“). This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify an interest in, or a change to their interest in, the Number of Shares and Votes of the Company.