Date: 2016-04-16
Type of information: Private placement
Company: Oasmia Pharmaceutical (Sweden)
Investors: institutional and qualified investors in Sweden
Amount: SEK 45,5 million (€ 4.96 million)
Funding type: private placement
Planned used: Oasmia Pharmaceutical intends to use the proceeds from the Private Placements to strengthen the working capital as well as finance the continued operations and further development of additional human and veterinary products based on the XR-17 technology.
Others: * On April 16, 2016, Oasmia Pharmaceutical announced that the company has completed a private placement of a convertible loan in the amount of SEK 28,000,000 with an interest rate of 8.5 per cent per year, as well as 1,666,666 new shares directed to and placed with institutional and qualified investors in Sweden. The convertible instrument issue is expected to provide the company with SEK 28,000,000 and the new share issue SEK 17,500,000 before transaction related costs.
In order to enable the private placements, the Board of Directors of Oasmia has, by virtue of the authorisation granted by the Annual General Meeting held on 28 September, 2015, resolved on a directed issue of a new convertible loan in the amount of 28,000,000 as well as a directed issue of 1,666,666 new shares. The convertible instruments have been subscribed to 100 per cent of the nominal amount and the convertible loan bear an interest rate of 8.5 per cent per year. The conversion rate is based on the closing price of Oasmia’s shares on Nasdaq Stockholm on 14 April 2016 and will amount to SEK 11.70. The term of the loan is one year with a maturity date in April 2017 if not converted to shares or repaid earlier. The subscription price of 10.50 for the new shares implies a discount of approximately 10.3 per cent based on the closing price of Oasmia’s shares on Nasdaq Stockholm on 14 April 2016. The terms of the convertible instruments and the subscription price of the shares are based on the accelerated book building procedure on 14 April 2016 and the Board of Directors has thereby ensured that the terms of the convertible instruments and the subscription price corresponds to fair market standards.
Through the issue of new shares, the number of shares in Oasmia increases by 1,666,666 from 105,542,644 to 107,209,310 and the share capital increases by SEK 166,666 from SEK 10,554,264.40 to SEK 10,720,931. The new issue of shares results in an equity dilution of approximately 1.6 per cent after the issue is completed. If the convertible loan is fully converted into shares, the number of shares in Oasmia increases by 2,393,160 from 107,209,310 (considering the share issue) to 109,602,470 and the share capital increases by SEK 239,316 from SEK 10,720,931 (considering the share issue) to SEK 10,960,247. If the convertible loan is fully converted into shares, a dilution effect arises corresponding to approximately 2.2 per cent (considering the share issue).
Therapeutic area: Cancer - Oncology - Veterinary medicine
