The pharmaceutical development company Egetis Therapeutics has raised SEK 462 million through a combined financing consisting of a targeted new issue and debt financing. It can be seen from a press release. The targeted new issue is for SEK 172 million and has been led by the American specialist investor Frazier Life Sciences, which subscribed for SEK 155 million.
According to Egetis, the demand for the new shares was significantly higher than the completed directed new issue. The subscription price was SEK 4 per share, a premium of 2.3 percent compared to the last closing price.
The dilution from the issue is approximately 14.7 percent of the number of shares and votes in the company. As for the debt financing, it amounts to SEK 290 million and is from Blackrock (formerly Kreos). The debt financing is divided into two tranches where payment takes place when certain conditions are met, such as the phase-3 study for Emcitate.
The arrangement also includes convertible loans that can later be converted into shares, as well as assigned warrants to Blackrock. The net proceeds from the targeted new issue and the debt financing will finance Emcitate’s continued development, applications for market approvals for Emcitate in the EU and in the US, and the continued development of a commercial and medical affairs organization, including pre-launch activities, as well as general corporate purposes and financial flexibility.