Active Biotech AB said it will launch a 48 million Swedish kronor rights issue.

The Lund, Sweden-based biotechnology company said its board proposed the issuance of 48,412,160 new shares priced at 1 krona per share.

Shareholders will have pre-emptive rights, wherein 1 new share can be subscribed for 2 existing shares.

The the rights issue is covered by subscription commitments and issue guarantee of about 30 million kronor, or about 61%.

MGA Holding AB, Nordstjernan AB, and Active Biotech's independent directors Peter Sjöstrand and Peter Thelin, with companies, undertook to subscribe about 41% of the rights issue, while Thelin guaranteed to subscribe to 10 million kronor, or about 21% of the rights issue.

Active Biotech expects to provide it with financial stability as it awaits results from trials which are currently going on under a partnership agreement with Teva Pharmaceutical Industries Ltd and privately held NeoTX.

The company plans to use net proceeds mainly for general working capital purposes.

Shareholders of record as of March 26, can take part in the rights issue while subscription for new shares will be made from March 28 to April 11.

Advokatfirman Vinge is acting as legal adviser in connection with the rights issue.

As of Feb. 15, US$1 was equivalent to 7.95 Swedish kronor.