The rights issue in Morphic Technologies AB has been oversubscribed four times over. The share issue comprises subscriptions for 10,915,545 new B shares and 334,000 new A shares, and will raise SEK 112.5 million for the company before issue costs. The company has also completed a private placement of 3,000,000 B shares to the Foundation for Baltic and East European Studies (Östersjöstiftelsen), raising SEK 33 million before issue costs. The purpose of the share issues is to enable investments in new wind power and fuel cell projects and ensure the long-term stability of Morphic’s ownership.

In the rights issue investors with and without pre-emption rights subscribed for 56 million shares, worth approximately SEK 560 million. The amount raised was SEK 112,495,450.
Shareholders with primary pre-emption rights subscribed for shares worth SEK 111.8 million, while subscriptions made with subsidiary pre-emption rights totaled SEK 364 million. On top of this, investors with no pre-emption rights subscribed for shares worth SEK 82 million. This means that shares worth only about SEK 700,000 will be distributed among shareholders subscribing for shares in excess of their primary pre-emption right entitlement (subsidiary pre-emption rights).
Shares subscribed for without subscription rights will in the first hand be allocated to shareholders whose shareholding on the record was less than one round lot. The remaining shares will then be allocated by lot in whole trading lots to existing shareholders subscribing for shares without pre-emption rights. Investors to whom shares are allocated will receive a contract note at the beginning of week 12.
Investors subscribing for shares who are not existing shareholders will not be allocated shares.
Upon completion of the two share issues and of the previously announced SEK 130 million private placement to Alecta and Swedbank Robur, the total number of shares in the company will be 136,744,996, comprising 130,360,966 B shares and 6,384,000 A shares representing a share capital of SEK 5,469,799.8.
Thenberg & Kind Fondkommission AB acted as financial adviser to Morphic in the share issue.
Karlskoga, March 15, 2007
The Board of Directors