Oasmia Sweden enters into SEK 75 million Standby Equity Distribution Agreement with U.S.-based YA Global Master SPV Ltd.

July 22 2010

Oasmia Pharmaceutical Sweden enters into SEK 75 million Standby Equity Distribution Agreement with YA Global. The agreement provides financial flexibility, allowing the Company to access capital at its discretion.

Oasmia Pharmaceutical AB has entered into a Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV Ltd (YA Global), which is managed by U.S.-based Yorkville Advisors, LLC. (Yorkville). Pursuant to the terms of the agreement, YA Global has committed to provide up to SEK 75 million of capital during the next 36 months, at Oasmia's discretion, through the purchase of newly issued Oasmia common shares. The purchase price of the newly issued common shares is determined by a formula based on the market price of the Oasmia common stock at the time of each issuance. Thus Oasmia will retain complete discretion over if and when it makes use of its rights throughout the life of the option and the commitment provides Oasmia with completely flexible access to additional equity capital up to SEK 75 million.

- It is very gratifying that Oasmia has created this alternative financing solution until the time when the Company can become self-financing. The signing of this agreement with YA Global better enables Oasmia to focus on the operational activities, including everything related to the registration processes, after a period where much energy has been dedicated to the work with Oasmia’s change of stock exchange list, as well as financing matters, says Julian Aleksov, CEO at Oasmia.

- Oasmia sees great potential for a future partnership with YA Global. The innovative structure of the potential investor´s commitment, with its combination of both flexibility and financial security, is a perfect arrangement for the Company at this stage. This agreement is completely in line with the investor´s investment strategy, Mr Aleksov continues.

- We are very pleased to be investing in Oasmia Pharmaceutical AB as our first Swedish portfolio company with its exciting nanotechnology platform and business plan, says Dr. Michael J. Nowak, Managing Director at Yorkville.

For more information about Yorkville Advisors LLC: www.yorkvilleadvisors.com


The press release is available in PDF format here.


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