NeuroVive Pharmaceutical AB is planning to raise about 78.5 million Swedish kronor in a rights issue to its existing shareholders.
The Swedish biotechnology company's shareholders have the preferential right to subscribe for units under the issue. One existing share held on record on April 5 entitles the bearer to 3 unit rights. Sixteen unit rights entitles to subscription of one unit, which consists of four new shares and one warrant of series 2018:1.
The subscription price per unit is 8 kronor, which corresponds to 2 kronor per share. NeuroVive will have raised about 78.5 million kronor at full subscription of the rights issue.
A warrant of series 2018:1 entitles the holder to subscribe for one NeuroVive common share at a subscription price of 3.80 kronor from Nov. 1 to Nov. 30. The company will also receive an additional 37.3 million kronor following full utilization of the warrants.
The rights issue is guaranteed up to about 55 million kronor, or 70%. NeuroVive plans to issue at most 39,244,644 shares and 9,811,161 warrants of series 2018:1.
The rights issue is subject to approval at the company's general meeting on March 22. The subscription period for the issue runs from April 10 to April 24.
NeuroVive has appointed Stockholm Corporate Finance AB, Advokatfirman Lindahl KB and Hagberg & Aneborn Fondkommission AB as financial adviser, legal adviser and issuer agent for the issue, respectively.
The company plans to use the proceeds to finance drug development projects, including the further clinical development of KL1333, a treatment for genetic mitochondrial disease mitochondrial myopathy, encephalopathy, lactic acidosis and stroke-like episodes.
The European Commission granted orphan drug designation to the company's KL1333 program in December 2017.
As of Feb. 14, US$1 was equivalent to 1.26 Swedish kronor.