Date: 2012-12-18
Type of information: Private placement
Company: Karo Bio (Sweden)
Investors:
Amount: MSEK 32.6 million (€3.7 million)
Funding type: rights issue
Planned used: The purpose of the issue is to secure funding that will allow the company to achieve a neutral cash flow, which is expected to be within reach in 2013.
Others: * On October 23, 2012, Karo Bio has announced that it has decided to convene an Extraordinary General Meeting on November 19, 2012 and there present a proposal to implement a rights issue of approximately MSEK 38.7 with preferential rights for existing shareholders. Three existing shares in Karo Bio will entitle the holder to subscribe for one new share. The subscription price is SEK 0.30 per share, corresponding to an issue amount of up to MSEK 38.7 before transaction costs. The subscription period for the rights issue is between November 28 and December 12, 2012. There are subscription commitments and underwriting agreements for a total of MSEK 28.1 corresponding to 73 percent of the issue amount.
The company assesses that the proposed rights issue of MSEK 38.7 will fund operations at least until the end of 2013 without obtaining additional licensing agreements or other financing.
The rights issue means that Karo Bio’s share capital is increased by a maximum of SEK 2,580,426.48 by the issuance of a maximum of 129,021,324 shares. Existing shareholders have preferential rights to subscribe for new shares in proportion to the number of shares already held. Those who on the record date are registered as shareholders in Karo Bio are entitled to subscribe for one (1) new share for every three (3) existing shares in the company.
* On December 18, 2012, Karo Bio has announced that the rights issue in Karo Bio, with last day for subscription on December 12, is now completed. In the rights issue, 108 883 397 shares will be issued raising SEK 32.6m before transactions costs. In the rights issue, 82 085 759 shares where subscribed for with preferential right, raising SEK 24.6m and 26 797 638 shares where subscribed for without preferential right, raising SEK 8.0m. The shares subscribed for without preferential right include 16 666 667 shares subscribed for by board member Per-Anders Johansson and 3 333 333 shares subscribed for by chairman of the board, Göran Wessman, in accordance with their guarantee undertakings.
Upon registration by the Swedish Companies Registration Office, the total number of outstanding shares in Karo Bio will amount to 495 947 369 shares and the share capital to 9 884 231 SEK. Trade in paid subscribed shares (BTA) will continue on NASDAQ OMX Stockholm until the rights issue has been registered by the Swedish Companies Registration Office, which is expected in the beginning of January 2013.
Therapeutic area:
