Dividend

BioArctic develops drug candidates for Alzheimer’s disease and Parkinson’s disease in collaboration with pharma companies. The Company enters into license agreements and research agreements with the partners and receives compensation in the form of milestone payments and royalties, which the Company uses to finance new projects. Milestone payments are normally received when the project achieves certain predefined development goals, e.g. the start of clinical trials or when clinical trials proceed from one phase to the next. Due to the nature of BioArctic’s income these revenue streams occur irregularly in time and are difficult to predict.

BioArctic’s revenue and profit are today based mainly on income of non-recurring character under the license and collaboration agreements the Company has entered into. BioArctic will continue to focus on the further development and expansion of the Company’s project portfolio. Available financial resources and the reported result shall therefore be reinvested in the operations to finance the Company’s long-term strategy. The Board’s intention is therefore not to propose any dividends to the shareholders until the Company generates long-term sustainable profitability. Any future dividends and the size thereof will be determined on the basis of the Company’s long-term growth, earnings trend and capital requirements, taking into account the objectives and strategies applicable from time to time. Dividends shall, in so far as dividends are proposed, be well-balanced with respect to the goals, scope and risks of the operations.