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 3,366,377 special rights entitling to 3,366,377 new Shares, for an aggregate subscription price of EUR 1,596,000 in connection with the scheduled amortisation payment of the First and Second Tranche Bonds (as defined below), occurred on 2 June 2026.

The Company has received a scheduled amortised payment notice from the bondholder for an aggregate amortised payment amount (including accrued interest) of EUR 924,000 for First Tranche bonds and EUR 672,000 for Second Tranche Bonds. Therefore, total aggregate amortised payment amount (including accrued interest) is EUR 1,596,000. As the Company has exercised its Share Settlement Option, the subscription price for the Shares subscribed for by the bondholder is EUR 0.4741 per Share being the lower of i) conversion price on the amortization date (EUR 0.50) or ii) 90 per cent of the lowest of (i) the volume weighted average price (“VWAP”) of a Share on the relevant payment date (2 June 2026), 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 3,366,377 Special Rights entitling to 3,366,377 new Shares in total, for an aggregate subscription price of EUR 1,596,000. Of those Shares 1,948,000 are used to amortize the First Tranche Bonds (including accrued interest) and 1,417,422 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 3,366,377 New Shares subscribed for and issued are expected to be registered in the Finnish Trade Register on or around 3 June 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 4 June 2026.

Following the registration, the aggregate number of shares in the Company is 206,411,888 and of these shares, the Company will hold 3,530,573 in treasury. The shares held in treasury by the Company do not confer a right to dividends or other shareholder rights. The Company announced on 28 May 2026 that it had issued 21,469,427 treasury shares to the Company itself and expects these shares to be registered on or around 10 June 2026. Once these shares are registered, the total number of shares in the Company will be 227,881,315, of which the Company then holds 25,000,000 shares in treasury.