NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, WHETHER DIRECTLY OR INDIRECTLY, IN OR TO
“We are very pleased to be able to present a complete funding solution that will enable us to carry out our Phase III study.
Summary of the Rights Issue
- One (1) existing share in the Company entitles to ten (10) unit rights. One (1) unit right entitles the holder to subscribe for one (1) Unit, consisting of four (4) newly issued shares and one (1) newly issued warrant of series TO 2 (the “Warrants”). This means that a maximum of 1,159,074,520 new shares and 289,768,630 new Warrants can be issued. The Warrants are intended to be admitted to trading on Nasdaq First North Growth Market.
- The subscription price has been set at
SEK 0.20 per Unit, corresponding toSEK 0.05 per share. The Warrants are issued free of charge. - Through the Rights Issue,
Lipidor can initially receive proceeds of a maximum of approximatelySEK 58.0 million before deduction of costs attributable to the Rights Issue, which are estimated to amount to approximatelySEK 8.0 million , of which approximatelySEK 4.0 million consists of underwriting compensation given that all underwriters chose cash remuneration. Upon full subscription and full exercise of all Warrants within the framework of issued Units, the Company may receive an additional capital contribution of a maximum of approximatelySEK 29.0 million . - The subscription period runs from and including
29 May 2024 up to and including12 June 2024 . - Unit rights that are not exercised during the subscription period become invalid and thereby lose their value. Trading in unit rights is planned to take place on Nasdaq First North Growth Market from and including
29 May 2024 up to and including7 June 2024 . Trading in BTU (Paid subscribed units) is planned to take place on Nasdaq First North Growth Market from and including29 May 2024 up to and including24 June 2024 . - The Rights Issue entails an initial maximum dilution of approximately 97.6 percent. In the event that the Rights Issue is fully subscribed, and all Warrants are exercised for subscription of shares, an additional dilution effect will be added, corresponding to approximately 19.6 percent in relation to the new number of shares after a fully subscribed Rights Issue. Together, the dilution amounts to a maximum of approximately 98.0 percent.
- The exercise period for the exercise of Warrants occurs during a period of two (2) weeks from and including the seventh trading day after the Company announces through a press release the study results in the Phase III study or, in the absence of such press release, during the period from and including
15 August 2025 up to and including29 August 2025 . The subscription price upon exercise of the Warrants has been set atSEK 0.10 per share. If all Warrants are exercised for subscription of shares, the Company will receive an additional maximum of approximatelySEK 29.0 million , before issue costs of approximatelySEK 1.4 million . - The Board of Directors’ resolution of the Rights Issue is subject to the approval by an Extraordinary General Meeting which is intended to be held on
21 May 2024 . The notice of the Extraordinary General Meeting will be published through a separate press release. - The record date in the Rights Issue is
27 May 2024 . The last trading day in theLipidor share, including the right to receive unit rights, is23 May 2024 . The shares are trading excluding the right to receive unit rights from24 May 2024 . - Complete information regarding the Rights Issue and information about the Company will be provided in an EU Growth Prospectus which is expected to be published on the Company's website around
24 May 2024 .
The Co-Investment
The Company has also entered into a Co-Investment agreement with
In return for the Co-Investment, Cerbios will receive, during the contract period, part of the Company's milestone payments from
The Co-Investment and the proceeds from the Rights Issue at the guaranteed level together secure full financing for the upcoming Phase III study.
Motive of the Rights Issue
Based on the lessons learned from the Company's previously completed phase III study, a thorough development work has been carried out that has resulted in the development of a second generation of the drug candidate AKP02 – AKP02G2. The updated formulation of AKP02G2 enables a prolongation of drug uptake in the treated area and has in preclinical tests demonstrated the properties deemed necessary to achieve equivalent medical efficacy with the reference product Enstilar® in a clinical registration study.
In order to conduct the Phase III study and launch AKP02G2 through its commercial partner Menarini Relife, the Company's Board of Directors has resolved on the implementation of the Rights Issue. Together with the Co-Investment entered into with Cerbios of
Upon full subscription, the Company will receive net proceeds of approximately
- Repayment of existing loan, the credit facility, and interest, approx.
SEK 3.7 million - Implementation of the clinical program for AKP02G2 and GMP-Manufacturing, approx.
SEK 13 million - Patent portfolio, approx.
SEK 1 million - Operational purposes, company resources and listing overheads, approx.
SEK 13.3 million
The above areas of use are included in the guaranteed level of the Rights Issue. If the Rights Issue is fully subscribed, the additional net proceeds will be allocated as follows, in order of priority:
- Payments that were otherwise deferred to be paid after the milestone payment has been received, approx.
SEK 6 million - Continued leasing for production equipment, approx.
SEK 4 million - New projects and pre-clinical work based on AKVANO®, approx.
SEK 5 million - Contingency budget, approx.
SEK 4 million
Through the Rights Issue, free of charge Warrants are issued, which, if fully exercised, can provide the Company with an additional approximately
Subscription- and underwriting undertakings
The Rights Issue is covered to approximately 66 percent by subscription undertakings and underwriting undertakings, of which subscription undertakings correspond to approximately 15 percent of the Rights Issue, bottom underwriting undertakings to approximately 34 percent of the Rights issue, intermediate underwriting undertakings approximately 9 percent of the Rights Issue and top underwriting undertakings amount to approximately 8 percent of the Rights Issue. For top underwritings, a compensation of 22 percent of the underwritten amount is to be paid in shares in the Company. For intermediate underwritings, a compensation of 20 percent of the underwritten amount is to be paid in cash or 22 percent of the underwritten amount in shares in the Company. For bottom underwriters, a compensation of 15 percent of the underwritten amount is to be paid in cash or 17 percent of the underwritten amount in shares in the Company. The underwriting compensation in the form of shares is conditional upon the Company's Annual General Meeting 2024 resolving or authorizing the Board of Directors to resolve on the issuance of the shares to the underwriters. No compensation is paid for the subscription undertakings. The subscription undertakings and underwriting undertakings are not secured by bank guarantees, pledges, or similar arrangements.
Credit facility
In order to immediately initiate the Phase III study, before the Rights Issue is completed, the Company has entered into a credit facility agreement of
Extraordinary General Meeting
The resolution by the Board of Directors regarding the Rights Issue is subject to approval by an Extraordinary General Meeting, expected to be held on
Prospectus
Complete information regarding the Rights Issue and information about the Company will be provided in an EU Growth Prospectus that is expected to be published on the Company's website around
Change in share capital and number of shares and dilution
Provided that the Rights Issue is subscribed and paid in full, the share capital in the Company will increase by a maximum of
Upon full exercise of all issued Warrants, the share capital in the Company increases by a further maximum of
Preliminary timetable for the Rights Issue
29 May –
29 May –
29 May –
© Modular Finance, source