Cereno Scientific AB (publ) announced on November 17, 2023, that the Board of Directors of the Company had decided to enter into a loan agreement of up to SEK 90 million issued by Formue Nord Fokus A/S, renamed to Fenja Capital II A/S ("Fenja Capital"), which matures for payment on May 14, 2025. Cereno Scientific announced July 10, 2024, that the Board of Directors of the Company has decided to extend financial runway through loan maturity date extension, which will be achieved byentering into a new loan agreement with Fenja Capital replacing the current loan agreement, which means that the loan is extended until March 31, 2026. Cereno Scientific is progressing a pipeline of three innovative drugs; lead candidate CS1, an histone deacetylase (HDAC) inhibitor that acts as an epigenetic modulator in phase II development as a treatment for the rare disease Pulmonary Arterial Hypertension (PAH); phase I candidate CS014, a novel HDAC inhibitor with epigenetic effects being developed for thrombosis prevention and preclinical candidate CS585, an oral, highly potent and selective prostacyclin (IP) receptor agonist that has demonstrated the potential to significantly improve disease mechanisms relevant to cardiovascular disease.

Since signing the first loan agreement in November 2023, Cereno has met several significant milestones including raising SEK 73.6 million via the TO3 warrant program, subscribed to 99.6%, initiating a phase I, first in human, trial of CS014 as well as closed the recruitment of the phase II trial of CS1 in PAH, confirming that results will be shared in Third Quarter 2024. With two drugs in the clinic and closing in on topline results from the phase II trial of CS1 in PAH, Cereno's Board of Directors has decided to enter into a new loan agreement, extending the loan until March 31st 2026 and to draw down the second payment of SEK 45 million. The injected capital continues to ensure the company's ability to accelerate the development of its three innovative drug candidates toward key milestones.

Additionally, it establishes favorable conditions for conducting business development activities, especially discussions concerning partnerships for the Company's development programs. The proceeds from the loan are, as communicated in November, primarily intended for Strengthening and accelerating business development, partnering, and M&A activities in an optimal way. Creating favorable conditions for the company to negotiate with potential partners over an extended period. Increasing the pace in all three of the company's development programs until each program reaches its next value-adding milestone.

The loan amounts to a total of SEK 90 million (the "Loan") and is divided into two tranches of SEK 45 million each. The first payment was made upon signing of the current loan agreement in November 2023. The second payment will be made upon signing of the new loan agreement.

The loan matures under the new loan agreement for payment on March 31, 2026. Under the new loan agreement, the Loan is subject to a set-up fee of 5.0 % of the Loan and carries an annual interest rate of STIBOR 3M plus ten (10) percentage points of the amount borrowed. The interest is due at the end of each calendar quarter and shall be paid by the Company on the last business day of the quarter.

The Company has the option to repay the Loan before the maturity date without a redemption fee. The terms of the new loan agreement correspond to the terms of the current loan agreement entered into in November 2023, with the exception of that the Loan matures for payment on March 31, 2026, instead of May 14, 2025. The new loan agreement will replace the current loan agreement.

The Board of Directors of the Company assess the loan terms as being on market terms, inter alia, in light of the fact that the terms correspond to the current loan agreement, and considers that entering into the new loan agreement and thereby extending the Loan is in the best interest of both the Company and its shareholders.