Date: 2012-05-15
Type of information: Fundraising
Company: Cytos Biotechnology (Switzerland)
Investors: international syndicate of five strategic investors including Amgen (USA), Abingworth (UK), Aisling Capital (USA) and venBio (USA)
Amount: CHF 37 million (€30.6 milion)
Funding type: equity and debt
Planned used: The new funds will recapitalize Cytos and enable it to further advance its programs and specifically to conduct a global multi-center Phase IIb clinical trial with its lead product CYT003-QbG10 in patients suffering from allergic asthma. CYT003 is a novel allergen-independent immunotherapy with disease-modifying potential that could be used to treat a broad range of different allergies. Cytos will also use the funds to develop additional pipeline programs and to progress its novel Immunodrug™ platform on which CYT003 is based.
Others: * On May 15, 2012, Cytos Biotechnology has announced the completion of a CHF 23.75 million equity investment. This equity financing is part of the planned CHF 37 million debt and equity financing to be provided by an international syndicate of investors as announced on March 21, 2012 and as approved by the shareholders of Cytos on April 20, 2012. Cytos intends to use the proceeds primarily to conduct a phase IIb study in allergic asthma with CYT003.
* On May 10, 2012, Cytos Biotechnology announced that it has raised an additional CHF 3.2 million via Rights Offering. The shareholders were offered the opportunity to subscribe for 7 new registered shares at a subscription price of CHF 1.87 each for 15 existing registered shares. 63.9%of the subscriptions rights were exercised and, accordingly, 1’709’700 new registered shares will be issued to the shareholders.
The completion of the rights offering with the issuance of the shares subscribed by the existing shareholders is subject to the completion of the investor capital increase as approved by the shareholders of Cytos on April 20, 2012. Cytos expects that the share capital increase in the total nominal amount of CHF 1’665’137.50 corresponding to 16’651’375 new registered shares, will be registered in the commercial register on May 14, 2012 and that trading in these new registered shares on the SIX Swiss Exchange will commence on May 15, 2012.
* On March 21, 2012, Cytos Biotechnology has announced that the company has signed agreements with an international syndicate of strategic investors to raise a total of up to CHF 37 million (€30.6 milion - U$40 million) in equity and debt. The financing committed by the investment syndicate will be a combination of CHF 23.75 million of equity (priced at CHF 1.87 per share, representing the 60 day average closing price prior to March 20, 2012) and CHF 13.25 million in secured convertible loan notes (with a conversion price of CHF 2.244 per share) payable in two tranches of CHF 6.625 million each, whereby the second tranche of CHF 6.625 million is subject to Cytos achieving certain milestones in connection with a proposed Phase IIb study of CYT003. Each investor of the investment syndicate will also receive one warrant (exercise price of CHF 2.244) for each new share subscribed for and issued to such investor. Furthermore, existing shareholders will be able to participate in this financing by way of a rights offering of up to additional CHF 5 million (i.e. up to 2’673’796 shares of Cytos with a nominal amount of CHF 0.10 each for a price of CHF 1.87 per share, whereby 15 shares held entitle its holder to subscribe for 7 new shares).
The capital increase mentioned above in the total amount of up to CHF 28.75 million will result in the issuance of up to 15’374’328 new shares of Cytos with a nominal value of CHF 0.10 each.
Further, up to 2’348’264 additional shares (representing 10% of Cytos’ total share capital outstanding after the capital increase mentioned in the previous paragraph) will be issued and acquired by Cytos at nominal value and held as treasury shares to serve primarily as underlying for the Warrants and the Convertible Loan Notes.
Therapeutic area: Allergic diseases - Inflammatory diseases - Respiratory diseases
