Targovax announces funding of up to NOK 300 million over three years to advance its clinical cancer programs and preclinical circular RNA platform

· Funding will support initiation of ONCOS-102 melanoma phase 2 and
TG01 mutant RAS clinical trials and in vivo PoC studies for the breakthrough
CircRNA program
· The convertible bond facility with Atlas Capital Markets based in London
provides a secure and flexible source of capital to fuel all of Targovax
three R&D pillars
· Further measures are pursued in parallel to unlock the whole
Potential of Targovax’s new circRNA platform

Oslo, Norway, February 16, 2023 – Targovax ASA (OSE: TRVX), a clinical stage
Immuno-oncology company developing immune activators to target solid tumors,
announces today that it has agreed to the terms of a convertible bond
Borrowing facility with Atlas Special Opportunities (“Atlas”) secured
Financing of up to NOK 300 million gross over three years. The agreement will
subject to the approval of a Targovax Extraordinary General Meeting (EGM).
March 2023.

The financing will enable Targovax to increase long-term shareholder value
Supporting progress for its three R&D pillars, including:

· Dosing of the first patients in the phase 2 study ONCOS-102 in PD-1 resistant treatment
Melanoma in renowned cancer centers in the USA and Europe
· Generation of in vivo proof-of-concept data in multiple environments for
Targovax’s unique circRNA program, an area of ​​rapidly growing interest among large corporations
Pharma and biotech
· Support for two clinical trials of the improved RAS mutant vaccine TG01
from major academic centers in Norway and the USA

“This convertible debenture financing from Atlas offers secured access to
significant capital to drive our portfolio of innovative R&D programs
in the next three years. In a challenging financing climate for global living
Science sector allows us the flexible structure to control the amount and
Timing of funding, which allows us to generate data and build shareholder value
we are progressing. We have evaluated a number of financing alternatives and credit facilities
solutions, and chose Atlas as a creative and experienced partner, committed
to help us achieve our goals. At the same time, we are pursuing others
strategic opportunities to fully realize the value and potential of our circRNA
Platform that we are rapidly promoting at the Karolinska Institute
Stockholm,” said Erik Digman Wiklund, CEO of Targovax.

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“We chose to partner with Targovax because we recognized the strong
Potential of its lead clinical candidate ONCOS-102 complemented by the cut
Edge CircRNA pipeline program which we see as a significant future platform
Potential. Atlas has a long track record of supporting European biotechnology
Companies with innovative financing solutions in financially strong times
need. Our goal is to be a reliable long-term supporter for our biotech partners
to make important scientific advances, and we always strive to improve our
interests with the development needs of the company, as well as the interests of
existing shareholders,” said Mustapha Raddi, Founder, Managing Partner of Atlas
capital markets.

Funding will be provided to Targovax through a first tranche of
Bonds with a total nominal value of NOK 37.5 million after approval of the general meeting
Agreement followed by a second tranche of NOK 30 million and subsequent tranches of
NOK 25 million up to the total face value of NOK 300 million, with a minimum of three months
between tranches. Targovax has full control over when and how many tranches it is
can be accessed over the 3-year contract period and is therefore flexible and flexible
predictable access to capital as needed.

The convertible bonds will be issued at 92 percent of the nominal value and thus
Provide Targovax with a total of up to NOK 276 million in net capital. The Bonds
do not bear interest and can be converted into shares at will
by Atlas, at a price calculated as 100 percent of the weighted average volume
Share price (VWAP) from three of the last 15 trading days before the bond
Conversion request from Atlas. After the conversion, Atlas is allowed to sell the Targovax
Shares in the market subject to certain predefined restrictions. Targovax
reserves the right to repurchase 110 percent of unconverted bonds at any time
face value.

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Targovax will provide further information on the convertible bond financing
in the company’s Q4 presentation on February 16, 2023 and welcome questions
the Q&A session of the presentation. An EGM notice will be issued in a timely manner
with detailed information about the agreement, financial structure and
Commercial terms.

Atlas Capital Markets (“ACM”) is a London-based investment fund incorporated in
2012 by Mustapha Raddi. In 2016, Atlas Capital Markets formed a joint venture
Investment vehicles Atlas Special Opportunities LLC (“ASO”) and Arena Structured
Private Investment (“ASPI”) with Arena Investors LP, a credit specialist
New York-based manager with $4 billion in assets under management. Since 2022 ACM
has signed a co-investment agreement with the international investment bank
Macquarie IM.

ACM’s management has decades of experience and has executed more than 80
Transactions successful all over the world.

Contact information, Atlas Capital Markets
[email protected] ([email protected] )

For more information please contact:
Erik Digman Wiklund, CEO
Telephone: +47 413 33 536
Email: [email protected]

Renate Birkeli, Investor Relations
Telephone: +47 922 61 624
Email: [email protected]

Media Inquiries:
Andreas Tinglum – Corporate Communications (Norway)
Telephone: +47 9300 1773
Email: [email protected]

About Targovax

Activation of the patient’s immune system to fight cancer

Targovax (OSE:TRVX) is a clinical-stage immuno-oncology company
Immunoactivators against hard-to-treat solid tumors. Targovax is focused on that
activate the patient’s immune system to fight the cancer and bring benefits
Cancer patients with few available treatment alternatives. Targovax is
Developing its product candidates in various cancer indications, including
mesothelioma, multiple myeloma and pancreatic cancer.

Targovax’s lead clinical candidate, ONCOS-102, is a genetically modified drug
oncolytic adenovirus engineered to selectively infect cancer
cells and activate the immune system against the tumor. ONCOS-102 has
demonstrated a favorable efficacy, immunological and safety profile in several cases
Indications, both as monotherapy and in combination, and ONCOS-102 is
Advances in a randomized phase 2 trial in melanoma patients resistant to PD
-1 treatment with checkpoint inhibitors.

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Targovax has also co-established a state-of-the-art circular RNA (circRNA) program
the intention to develop next-generation RNA therapeutics for various applications,
Building on clinical experience and deep mechanistic insights from the start
generation products. In addition, Targovax has a KRAS immunotherapy program,
with the lead candidate TG01 to enter clinical trials in an expanded format
Pancreatic cancer and multiple myeloma in early 2023. This provides
Targovax with a rich pipeline of innovative future therapeutic candidates
Follow ONCOS-102.

This information is considered insider information within the meaning of the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant to
Section 5-12 of the Norwegian Securities Trading Act. The stock exchange
Announcement was made by Renate Birkeli, Investor Relations, Targovax ASA.

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