On June 14, 2021 Isofol Medical AB (publ) (Nasdaq First North Premier Growth Market: ISOFOL) ("Isofol" or the "Company") reported that fully guaranteed new share issue with preferential rights for the Company’s existing shareholders (the "Rights Issue"), which ended on June 10, 2021, was oversubscribed (Press release, Isofol Medical, JUN 14, 2021, View Source [SID1234583958]). Due to the strong demand from strategic investors, a directed issue with deviation from the shareholders’ preferential rights of approximately SEK 100 million (the "Over-Allotment Option") was exercised. Through the Rights Issue and the Over-Allotment Option, Isofol will receive proceeds amounting to approximately SEK 500 million before transaction costs.
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The result of the Rights Issue of maximum 62,524,474 shares shows that 61,550,652 new shares, corresponding to approximately 98.4 percent of the Rights Issue, have been subscribed for with subscription rights. Additionally, 27,532,079 shares were subscribed for without subscription rights of which 973,822 shares, corresponding to 1.6 percent of the Rights Issue, have been allotted to investors that have subscribed for shares without subscription rights. The Rights Issue is thus oversubscribed. Allotment of shares subscribed for without subscription rights has been made in accordance with the resolved allotment principles. Notice of allotment of shares subscribed for without subscription rights will only be sent to those who have been allotted shares. Payment shall be made in accordance with the instructions on the contract note. Nominee-registered shareholders will receive notice of allotment and payment in accordance with the procedures of each nominee.
Due to the oversubscription of the Rights Issue, the Board of Directors of Isofol has exercised the Over-Allotment Option to meet additional demand from strategic investors through a directed issue of 15,625,000 new shares. The Over-Allotment Option was directed to a few reputable investors, broadening Isofol’s shareholder base.
Isofol’s CEO, Ulf Jungnelius, comments: "We are very happy and satisfied with the strong support that both existing and new shareholders have shown us in the rights issue that made it possible to exercise the over-allotment option. The rights issue in combination with the over-allotment Option provides Isofol with the financial resources required to complete the global Phase III AGENT study and secure funding beyond the submission of the application with the FDA."
Following the Rights Issue and Over-Allotment Option, Isofol’s share capital will increase by approximately SEK 2,392,767.2 to approximately SEK 4,945,252.1 and the number of shares in Isofol will increase by 78,149,474 shares to 161,515,440 shares.
The shares subscribed for with subscription rights are expected to be registered with the Swedish Companies Registration Office (the "SCRO") on or about June 15, 2021 and are expected to begin trading on Nasdaq First North Premier Growth Market on June 18, 2021.
The shares subscribed for without subscription rights and through exercise of the Over-Allotment Option are expected to be registered with the SCRO on or about June 24, 2021 and are expected to begin trading on Nasdaq First North Premier Growth Market on June 30, 2021.
Advisors
Carnegie Investment Bank AB (publ) and Pareto Securities AB act as Joint Bookrunners in connection with the Rights Issue and the potential Over-Allotment Option. Vinge law firm acts as legal adviser to Isofol, and Schjødt law firm acts as legal adviser to the Joint Bookrunners. Ashurst LLP acts as legal adviser to the Joint Bookrunners as to US securities law.
For further information, please contact
This is information that Isofol Medical AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 10:00 CEST on June 14, 2021.
About arfolitixorin
Arfolitixorin is Isofol’s proprietary drug candidate being developed to increase the efficacy of standard of care chemotherapy for advanced colorectal cancer. The drug candidate is currently being studied in a global Phase III study, AGENT. As the key active metabolite of the widely used folate-based drugs, arfolitixorin can potentially benefit more patients with advanced colorectal cancer, as it does not require complicated metabolic activation to become effective.