The Board of Directors of Prostatype Genomics AB (”Prostatype Genomics” or “the Company”) has today, the 2nd of May 2022, decided to propose that the upcoming Annual General Meeting resolves to authorize the Board to decide on a rights issue of units of initially approx. SEK 22.5 million before issue costs, followed by an additional approx. SEK 22.5 million referring to attached warrants (”the Rights Issue”). The general public is also suggested to have the possibility to subscribe in the Rights Issue. The initial part of the Rights Issue is to 100 percent covered by pre-subscription and guarantee commitments. Notice to the Annual General Meeting will be published through a separate press release.
Background and motive for the Rights issue, and the Company’s objectives
The Board of the Company has decided to propose to the next Annual General Meeting to authorize the Board to, at a later time, decide on the implementation of the Rights Issue. The Annual General Meeting, which is scheduled to take place on June 2, 2022, will be announced by a separate notice through a press release.
The motive behind the proposed Rights Issue is to be able to finance and intensify the launch of the Company's genetic test, Prostatype®, in USA and Europe and to initiate and complete a number of validation studies in selected European markets as well as in the USA and Asia.
For the current year, Prostatype Genomics' main goal is to initiate sales in selected markets in Europe, enter into distributor agreements with one or more CLIA partners (which can offer Prostatype® with FDA approval) in the USA and publish the external studies conducted at Skåne University Hospital and the University Hospital in Uppsala, of which the latter will also be presented at the AUA (American Urology Association) in the US. Other important goals for 2022 are to begin an American validation study and recruit the CEO and complementary organization to the newly established subsidiary in the USA. The Company's goal is to achieve sales of approx. SEK 3.5 million by 2022.
In 2023, the Company intends to mainly initiate cooperation with selected distributors in France and the Middle East, start sales in the US, France, Taiwan and the Middle East and enter into agreements with distribution partners in the US. The Company's goal is to achieve sales of approx. SEK 17.5 million by 2023.
Subject to the Annual General Meeting approving the Board’s proposal to authorize the Board to decide on the Rights Issue, the planned initial part of the Rights Issue is secured to approx. 100 percent through pre-subscription- and guarantee commitments. The terms (including the subscription price) in the planned Rights Issue are intended to be determined in connection with the Board's decision on the Rights Issue on the basis of the proposed authorization. The subscription price is planned to be determined with a discount of approx. 20 percent based on the average volume-weighted share price over a period of 5-10 trading days before the Board's decision to carry out the Rights Issue. The amount that the Company can initially receive is estimated to amount to approximately SEK 22.5 million before issue costs, provided that the Rights Issue is fully subscribed.
In the proposed Rights Issue, in addition to shares, free warrants are planned to be issued. The exercise price for the warrants is planned to be set at the same price per share as the subscription price in the initial part of the Rights Issue. The amount the Company can obtain through the exercise of warrants is thus estimated to amount to a maximum of approximately SEK 22.5 million before issue costs, provided that all warrants are exercised.
Pre-subscription and guarantee commitments
Prostatype Genomics has received pre-subscription and guarantee commitments totalling approx. SEK 22.5 million, which corresponds to approx. 100 percent of the initial part of the Rights Issue. The pre-subscription commitments, which relate to commitments from existing owners including the Board, correspond to a total of approx. SEK 8.5 million (approximately 38 percent of the initial issue proceeds). Guarantee commitments correspond to a total of approx. SEK 14 million (approx. 62 percent of the initial issue proceeds), of which approx. SEK 2.4 million from existing owners (incl. approx. SEK 0.5 million from Board members) and approx. SEK 11.6 million from external investors. For issued guarantee commitments from guarantors that do not pertain to Board members, a cash premium compensation of ten percent is paid. For guarantee commitments from Board members, a cash premium compensation of five percent is paid.
Annual General Meeting and estimated time plan for the Rights Issue
The Board will invite the shareholders to the Annual General Meeting through a separate press release. The Annual General Meeting is scheduled to take place on June 2, 2022. A detailed schedule and terms for the Rights Issue will be announced with the decision on the Rights Issue. Provided that the Board is authorized by the Annual General Meeting, the subscription period in the initial part of the Rights Issue is planned to end no later than on the 31st of August 2022. Planned exercise period for attached warrants is then expected to take place during Q1 2023.
In connection with the Rights Issue, Prostatype Genomics has hired Sedermera Corporate Finance AB as the financial advisor, Markets & Corporate Law Nordic AB as the legal advisor and Nordic Issuing AB as the issuing agent. Shark Communication AB assists the Company with advice regarding communication.
For more information about the Rights Issue, please contact:
Sedermera Corporate Finance AB
Phone: +46 40 615 14 10
For more information about Prostatype Genomics, please contact:
Nicklas Rosendal, press contact
Phone: +46 708-89 33 34
Svensk Kapitalmarknadsgranskning AB, 011-32 30 732, email@example.com
This disclosure contains information that Prostatype Genomics AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 02-05-2022 18:38 CET.