Zealand Pharma Amends Financing Agreement with Oberland Capital as Part of Company’s Refocused Strategy

Company announcement – No. 16/ 2022

Zealand Pharma Amends Financing Agreement with Oberland Capital as Part of Company’s Refocused Strategy

• Amendment reduces the outstanding note principal balance from $100 million to $50 million and removes any restrictions on the use of the cash

• Agreement includes access to an additional $75 million in incremental capital following specific events

• Financial runway extended beyond significant pipeline milestones and into 2023

Copenhagen, DK and Boston, MA, U.S. May 10, 2022 – Zealand Pharma A/S (Nasdaq: ZEAL) (CVR-no. 20045078), a biotechnology company focused on the discovery and development of innovative peptide-based medicines, today announced an amendment to its existing financing agreement with Oberland Capital Management LLC (“Oberland Capital”).

The amended terms of the agreement are:

• Zealand to repurchase $50.0 million of note principal with a 1.2x prepayment premium.

• Oberland Capital to provide Zealand with up to $75.0 million in incremental capital structured as:

  • $12.5 million at Oberland Capital’s option following positive glepaglutide data,

  • $12.5 million at a mutual option at any time, and

  • $50.0 million to be reserved for mergers and acquisitions at the mutual option of the parties.

• The liquidity covenant to be fully eliminated.

• Excluding any upfronts from partnerships on commercial assets, Oberland Capital will have the option to apply 75% of any proceeds from future licenses and/or the sale of other assets to…