Inside Information: Faron publishes preliminary results of its successful rights issue

Inside Information: Faron publishes preliminary results of its successful rights issue

TURKU, FINLAND – Faron Pharmaceuticals Ltd. (AIM: FARN, First North: FARON, “Faron” or the “Company”) today announces the preliminary results of the fully committed rights offering of approximately EUR 40.1 million (the "Offering") consisting of up to 80,158,126 offer shares (the “Offer Shares”).

The subscription period for the Offer Shares (as described below) on Nasdaq First North Growth Market Finland (“First North”) ended on 2 April 2026 and the subscription period for the Offer DIs (as described below) on AIM (“AIM”) ended on 31 March 2026. According to the preliminary results of the Offering, a total of 41,944,771 Offer Shares, which may be represented by depository interests (“DIs”) (“Offer DIs”), were subscribed for in the Offering, corresponding to approximately 52.33 per cent of the total number of 80,158,126 Offer Shares.

From the Offer Shares, a total of 38,756,007 Offer Shares were subscribed for with subscription rights and a total of 3,188,764 Offer Shares were subscribed for without subscription rights, excluding the Cornerstone Commitments (as defined below). The subscription price in the Offering was EUR 0.50 per Offer Share. In addition, as announced by the Company on 10 March 2026, certain investors have agreed to subscribe for Offer Shares that have not been subscribed for in the Offering pursuant to the subscription rights for an aggregate amount of up to EUR 7.1 million (together the "Cornerstone Commitments"). The remaining unsubscribed shares will be allocated to investors who have previously agreed to subscribe for any Offer Shares not otherwise subscribed and paid for pursuant to the subscription rights or in the secondary subscription (“Subscription Guarantees”). The Company will receive gross proceeds of approximately EUR 40.1 million from the Offering and net proceeds of approximately EUR 32.8 million, taking into account transaction costs, including fees payable to the subscription guarantors for the guarantees, in connection with the Offering. The net proceeds will be used, among others, to strengthen the Company’s financial position, to run a randomized, 90-patient Phase II trial in frontline high risk myelodysplastic syndrome (“HR MDS”) with bexmarilimab in combination with azacitidine as well as to accelerate the development of its lead asset bexmarilimab by providing it to up to five investigator-initiated trials (“IIT”).

Juho Jalkanen, CEO of Faron, comments:

“I am very pleased with the preliminary results of this rights issue, which reflects the strong commitment and trust of both our existing shareholders and new cornerstone investors. Successfully securing approximately EUR 40 million in gross proceeds provides a decisive foundation for Faron’s next chapter. This funding allows us to accelerate the development of our lead asset, bexmarilimab, specifically by financing our randomized Phase II trial in frontline high-risk MDS and extending our cash runway through November 2027. I want to thank all our shareholders for their participation: your support is instrumental as we work to transform the treatment landscape for patients with aggressive hematological cancers and prove the broader potential of our immunotherapy platform.”

The final results of the Offering will be published on or about 9 April 2026 after the Board of Directors of the Company has approved the subscriptions made in the Offering. Allotment of the Offer Shares will be made in accordance with the terms and conditions of the Offering. As a result of the Offering, the total number of shares in Faron Pharmaceuticals will increase by 80,000,000 from 119,472,660 to 199,472,660 provided that the Board of Directors of the Company approves the subscriptions made in the Offering. The Offer Shares issued in the Offering amount to approximately 67.1 per cent of the outstanding shares in the Company following the Offering. Faron maintains the flexibility to conduct a directed share issue of up to a total of 19,296,473 shares at a subscription price that will be at least equal to the subscription price in the Offering.

The last day of trading in the interim shares on First North will be on or about 14 April 2026. The last day of trading in DIs representing the interim shares on AIM will be on or about 14 April 2026. The interim shares will be combined with the existing shares of the Company on or about 14 April 2026. Trading in the new Offer Shares on First North and in the Offer DIs on AIM is expected to commence on First North and AIM on or about 15 April 2026. The Offer Shares confer the same rights as the Company’s other shares, after being registered with the Trade Register and in the Company’s shareholder register on or about 15 April 2026.

Stifel Europe Securities SAS acts as the sole global coordinator and bookrunner in respect of the Offering (the “Sole Global Coordinator and Bookrunner”). Roschier, Attorneys Ltd. acts as the Company’s legal adviser in Finland and Freshfields LLP acts as the Company’s legal adviser as to U.S. federal securities law and U.K. law. Krogerus Attorneys Ltd acts as the Sole Global Coordinator and Bookrunner’s legal adviser in Finland and Milbank LLP acts as the Sole Global Coordinator and Bookrunner’s legal adviser in the United Kingdom and the United States. IR Partners Oy acts as the Company’s communications adviser.

For the purposes of MAR and UK MAR, the person responsible for arranging for the release of this

announcement on behalf of the Company is Juho Jalkanen, Chief Executive Officer.

Faron Pharmaceuticals Ltd

About bexmarilimab

Caution regarding forward-looking statements