Resolutions adopted by the Extraordinary General Meeting in Karo Bio held on May 25, 2015

STOCKHOLM, May 25, 2015 – Karo Bio AB (publ). At the Extraordinary General
Meeting in Karo Bio held on Monday May 25, 2015 the following resolutions were
adopted.

The meeting resolved to approve the resolution by the Board on a rights issue of
approximately MSEK 230 with preferential rights for the shareholders of the
company.

The rights issue will increase the share capital of Karo Bio by a maximum of SEK
4,598,244.45 by the issuance of a maximum of 229,914,516 shares. The new shares
shall be subscribed for with preferential rights for the company’s shareholders
in proportion to the number of shares previously held. Registered shareholders
of Karo Bio as at the record date will be entitled to subscribe for one (1) new
share for each three (3) existing shares in the company. The record date for the
right to participate in the rights issue is June 1, 2015. Subscription for new
shares shall take place during the period from June 3, 2015 up to and including
June 18, 2015. The subscription price for each new share is SEK 1.00 which means
that the rights issue, at full subscription, will provide Karo Bio with proceeds
of approximately MSEK 230 before rights issue costs.

The meeting resolved to approve the proposal of the Board for the authorization
of the Board to resolve on an issue of additional shares to meet a possible over
-subscription in the rights issue.

The Board was further authorized to resolve on a new share issue of additionally
in total 20,000,000 shares, with or without preferential rights for the
shareholders of the company, at a subscription price of SEK 1.00 per share in
order to enable that the company is provided with additional rights issue
proceeds of MSEK 20. At full subscription of the rights issue, the over
-allotment option is equivalent to approximately 2% of the share capital. The
reason for deviating from the shareholders’ preferential right is to provide the
company with additional rights issue proceeds at a possible over-subscription of
the rights issue and to be able to increase the number of shareholders of the
company.

For additional information, please contact:
Henrik Palm, CFO, mobile phone +46 70-540 40 14 or email henrik.palm@karobio.se

About Karo Bio
Karo Bio is a development company focused on broadening its operations to
include projects and products closer to market. Karo Bio has several projects
approaching clinical phase. Karo Bio is based in Huddinge, Sweden and is listed
on Nasdaq Stockholm.

Karo Bio publishes this information in accordance with the Swedish Securities
Markets Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication on May 25, 2015 at 17:00 CET.

This press release is also available at www.karobio.com and
www.newsroom.cision.com