Softox has money problems after delays: Borrows 15 million from companies where the CEO’s brother is chairman of the board

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– Why do you need a supply of money now?

– There is a lot of exciting happening in the company now, among other things, we have received the approval from the Danish Medicines Agency for conducting the first study in humans with our lung solution SoftOx Inhalation Solution. A solution that has the potential to become a “game changer” in the future treatment of many types of lung infections. The board therefore finds it appropriate to strengthen liquidity before possibly considering the need for additional capital at a later date, Geir Almås answers.

Discount on conversion

The loan from Almhaug to Softox has a term of twelve months and is not interest-bearing. It will in principle be repaid in cash, but can be converted into shares until maturity, the announcement states. This happens at a price of around NOK 38.5 – significantly lower than the current 48.

The price of shares at conversion is equal to the share weights’ volume weights on average over the last five days, minus five percent.

“The board is of the opinion that the discount is commercially justified as the loan is interest-free,” the report states.