Resolutions of the Extraordinary General Meeting December 2025

Curasight’s Extraordinary General Meeting approved a board authorisation to issue one or more convertible loan notes (convertible into shares) and to increase share capital accordingly up to a nominal DKK 125,313.30, with the mandate valid until 29 December 2030. The board plans to use the authorisation to issue a convertible loan note to a third‑party lender backing a directed issue referenced in the company’s 12 December 2025 release; the articles of association will be amended (clause 5.3) and the chairman authorised to register the changes with Danish authorities. Curasight is a Copenhagen‑based clinical development company focused on a uPAR theranostic platform (uTRACE/uTREAT).

Analysis

Market structure: The board’s authorization to issue non‑preemptive convertibles privileges a third‑party lender and increases the potential future equity supply, creating a direct dilution vector for existing CURAS shareholders (ticker CURAS). Winners: the lender/investor who gains option‑like upside with downside protection; losers: current equity holders and short‑dated call holders if conversion is at a deep discount. Cross‑asset: expect higher equity implied volatility for CURAS, modest demand for short‑dated puts, and limited FX/commodity impact; convertibles may attract fixed‑income/credit oriented investors seeking hybrid exposure.

Risk assessment: Tail risks include a forced conversion at >20% discount, clinical trial failure wiping out upside, or change‑of‑control clauses that accelerate dilution; low‑probability but high‑impact. Immediate (days): market reaction when term sheet published; short (weeks/months): share price re‑rating around conversion price and cash runway; long (quarters/years): value creation if proceeds fund pivotal readouts. Hidden dependencies: exact conversion price, anti‑dilution mechanics, lock‑ups, and whether proceeds extend runway >12 months — these drive dilution magnitude and timing.

Trade implications: Direct play: hedge or trim CURAS exposure ahead of term sheet — implied action window 7–14 days. Options: buy 3‑month puts ~10–20% OTM if available, or construct a put spread to limit cost. Pair trade: short CURAS (1–2% net portfolio) vs long diversified biotech ETF (IBB) to isolate company‑specific dilution risk. Entry/exit: establish hedges now, re‑assess and scale positions when conversion price and cash runway are disclosed; unwind if conversion dilutive impact <5% or cash runway >18 months.

Contrarian angles: Market may overprice dilution if the authorized nominal amount is small relative to market cap — compute implied share increase immediately (see action items). If proceeds fund a clear clinical inflection within 12–18 months, underreaction could create a buying opportunity; conversely, if convert price is >10% below market, downside may be underappreciated. Historical parallel: small biotech non‑preemptive financings often produce a 10–30% near‑term sell‑off but recover on positive readouts; monitor issuance terms closely for that timing arbitrage.

Key Decisions for Investors

• If you hold CURAS (ticker CURAS), reduce unhedged equity exposure by 30–50% within 7 days pending the term sheet; simultaneously purchase 3‑month puts ~10% OTM sized to cover remaining equity exposure (or equivalent short position of 1–2% portfolio if options illiquid).
• If no position, consider a tactical short of CURAS sized 1–2% of portfolio now and scale to 3–5% if the announced conversion price is ≥10% below market or implied dilution >5%; cap short duration at 3 months unless clinical/fundraising visibility deteriorates.
• Prepare a conditional long: commit to a 2–3% portfolio long position only if (a) the company discloses conversion price within 5–15% of market and (b) pro forma cash runway ≥18 months and clear milestone spend towards a Phase II/partnering event — execute within 14 days of disclosure.
• Execute a relative‑value pair: short CURAS and go long iShares Nasdaq Biotechnology ETF (IBB) equal notional to isolate company‑specific dilution risk; reweight after term‑sheet publication (timeframe: implement within 7–14 days).