Date: 2016-10-07
Type of information: Private placement
Company: Newron Pharmaceuticals (Italy)
Investors:
Amount: CHF 26.1 million (€ 23.9 million)
Funding type: private placement
Planned used: Newron will use the net proceeds of the issuance for general corporate purposes, including the financing of Newron's operations and research programs, for the development of Newron's current and future pipeline products with a focus on orphan indications and products and product candidates that need certain regulatory and development efforts to repurpose them, and if such aforementioned development programs are successfully completed, to explore the possibility of establishing commercialization operations for certain selected territories.
Last September, Newron Pharmaceuticals has re-submitted the New Drug Application (NDA) for Xadago® (safinamide) to the FDA and the US FDA decision on the New Drug Application NDA is expected in QI/2017. Newron’s focus is now on sarizotan in Rett syndrom, an orphan CNS disease for which Newron has already been granted an Orphan Drug Designation (ODD) in both the EU and the USA, as well as the completion of the Phase IIa study with evenamide (NW-3509) in schizophrenia, expected to read out by the end of 2016.
Others: * On October 7, 2016, Newron Pharmaceuticals announced that it has raised gross proceeds of CHF26.1 million. through a private placement of new shares via an accelerated book building procedure announced on October 6, 2016.
Newron has placed 1,320,530 new shares with institutional investors at a subscription price of CHF 19.75 per share, representing a 13.4% discount to the last five trading days’ average closing price. The new shares represent 8.4% of the new total number of outstanding shares (post transaction) of 15,769,168. Closing of the transaction will be subject to certain customary conditions. The new ordinary shares will be listed and traded on the SIX Swiss Exchange under the same ISIN as the Company’s existing shares (ISIN: IT0004147952) on or around October 13, 2016.
* On October 6, 2016, Newron Pharmaceuticals announced the launch of a private placement of new shares to institutional investors for up to 10% of the company’s share capital, the ordinary shares originating from the capital increase approved by Newron’s shareholders’ meeting on March 22, 2016. In line with the shareholders’ approval, option rights of the existing shareholders are excluded.The new shares will be placed with institutional investors through an accelerated book building process, which will open with immediate effect. Newron and Newron’s board members and executive management will agree with the Placement Agents to a lock-up on future share issuances and existing shareholdings, as applicable, for a period of 90 days from the closing date, subject to customary exceptions.
Therapeutic area: CNS diseases
