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 3,572,851 special rights entitling to 3,572,851 new Shares, for an aggregate subscription price of EUR 1,613,499.51 in connection with the scheduled amortisation payment of the First and Second Tranche Bonds (as defined below), settlement of which will occur on 15 April 2026.

The Company has received a scheduled amortised payment notice from the bondholder for an aggregate amortised payment amount (including accrued interest) of EUR 934,500 for First Tranche bonds and EUR 679,000 for Second Tranche Bonds. Therefore, total aggregate amortised payment amount (including accrued interest) is EUR 1,613,500. As the Company has exercised its Share Settlement Option, the subscription price for the Shares subscribed for by the bondholder is EUR 0.4516 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 (initially set 2 April 2026, but payment deferred by mutual agreement between HCM and the Company), 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 3,572,851 Special Rights entitling to 3,572,851 new Shares in total, for an aggregate subscription price of EUR 1,613,499.51. Of those Shares 2,069,309 are used to amortize the First Tranche Bonds (including accrued interest) and 1,503,542 to amortize the Second Tranche 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 the Second Tranche Bonds and recorded into the reserve for invested unrestricted equity.

Admission and Total Voting Rights

The 3,572,851 Shares subscribed for and issued are expected to be registered in the Finnish Trade Register on or around 14 April 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 15 April 2026.

Following the issuance and registration of new Shares and offer shares as part of the rights issue in accordance with the release published by the Company on 9 April 2026, the aggregate number of ordinary shares in the Company will be 203,045,511. Shares held in treasury by the Company do not confer a right to dividends or other shareholder rights. Following the registration of the offer shares of the rights issue and new Shares as well as completion of delivery of all offer shares of the rights issue, the Company will have 3,530,573 shares in treasury and therefore, the total number of voting rights in Faron will be 199,514,938 (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.