Captor Therapeutics S.A.'s strategic plans for 2023-2025.

Current report no. 7/2023

Date of preparation: 6 March 2023.

Subject: Captor Therapeutics S.A.'s strategic plans for 2023-2025.

Legal basis: Article 17(1) of the MAR Regulation - confidential information

The Management Board of Captor Therapeutics S.A., based in Wrocław ("Company", "Captor") informs that on [6] March 2023. The Supervisory Board of the Company adopted a resolution approving the Company's next steps in the Company's strategy forfor 2023-2025 ("Strategic Plans"), submitted by the Management Board. The key objectives of the Company's Strategic Plans include:

• initiation of clinical trials for the Company's most advanced projects, i.e., CT-01 (inter alia hepatocellular carcinoma) and CT-03 (inter alia haematological malignancies) in 2023 and 2024, respectively, with a possibility to publish results from clinical trials in 2024 and 2025;
• receipt of confirmation of the efficacy of projects CT-02 and CT-05 in an in-vivo proof of efficacy study in 2023 and starting discussions to commercialize such projects;
• expansion of Optigrade[TM] platform to include new degraders with high clinical potential, to apply their potential in the area of antibody-drug conjugates (ADCs), and to use these opportunities to establish collaborations in the above areas;
• Leveraging the current investor base to attract foreign investors, with a particular focus on the US market, potentially translating into the Company's listing on the US NASDAQ (via ADR or direct listing), assuming favourable conditions, including on capital markets.

Over the period 2023-2025, the Company anticipates that its estimated operating expenses will reach a total of approximately USD  79.4 million (approximately PLN 352.1 million), of which:

• approximately USD 21.6 m (PLN 95.8 m) will be allocated to clinical trials;
• approximately USD 19.7m (PLN 87.4m) will be allocated to early-stage projects and pre-clinical development;
• approximately USD 14.8m (PLN 65.6m) is planned for the development of the OptigradeTM Platform;
• approximately(USD 18.3m (PLN 81.1m) is planned to cover the Company's selling, general and administrative expenses;
• a cash reserve of approximately (USD 5 (PLN 22.2 m), which is not considered a budget item.

The Company's management assumes that the above strategic expenditures will be financed from:

• the Company's cash of approximately USD 20m (PLN 88.7m) , as of 31 December 2022;
• awarded grants from the NCBR in the amount of USD 15.2m (PLN 67.4m) ;
• expected payments from concluded partnership agreements (reimbursement of costs) in the amount of USD 4.6m (PLN 20.4m) ;
• equity financing of up to USD 39.6m (PLN 175.6m).

The Company’s Management Board plans to secure funds for the implementation of the adopted Strategic Plans by issuing (within the authorised share capital) up to 1,222,467 ordinary shares. The issue of shares will take place at the most favourable time for the Company, taking into account market conditions and investor interest, although the Board does not rule out issuing a smaller number of shares if the issue price enables the Company to raise financing enabling the implementation of the Strategic Plans.

In the opinion of the Company's Management Board, the adoption of the Strategic Plans for the period 2023-2025 is due response to the significant recent progress made in the ongoing projects and will contribute to the Company's development, growth in value and, consequently, its financial position. 

The full content of the Strategic Plans is attached hereto.