Date: 2016-02-26
Type of information: Private placement
Company: Diamyd Medical (Sweden)
Investors: Bertil Lindkvist, Anders Essen-Möller
Amount: SEK 22.1 million (€ 2.4 million)
Funding type: private placement
Planned used: Diamyd Medical’s cash at hand is currently approximately SEK 21 million, which with the approved budget is estimated to last until November 2016. The Board of Directors have decided to secure funds to accelerate development, which is expected to further strengthen the interest of major pharmaceutical companies to enter into a license agreement with the Company. In addition to six ongoing clinical studies with the diabetes vaccine Diamyd®, where combinations with other substances are evaluated with the aim of increasing the effect of the diabetes vaccine, Diamyd plans among other things for a new GABA / GAD study in Sweden; preclinical studies with different antigens and GABA in Prague; and an expansion of the ongoing DIAGNODE study. Furthermore, a dialysis step may be added into the manufacturing process to improve the efficacy of the diabetes vaccine in combination with GABA’s tolerogenic nature. Diamyd also keeps abreast of further investments in the stem cell company Cellaviva to promote research, including differentiating stem cells into insulin-producing beta cells.
Others: * On February 26, 2016, Diamyd Medical announced that the Company has completed a new share issue with preferential rights for existing shareholders through which the Company will receive proceeds of MSEK 22.1 (€ 2.4 million) before issue expenses. There has been substantial interest in the issue. Subscription applications totaling approximately MSEK 45.8 were received, corresponding to a subscription rate of about 207 percent. * On February 2, 2016, Diamyd Medical announced that its major owners, Bertil Lindkvist and Anders Essen-Möller, notified that they will take up their share corresponding to approximately one third of the upcoming rights issue of SEK 22.1 million. First day of trading in the B share without entitlement to participate in the rights issue is February 2, 2016. Record date for participation in the rights issue is February 3, 2016. The issue price has been set at SEK 3.00 per share. The subscription period will extend from February 8, 2016 until February 22, 2016. Trading in subscription rights will extend from February 8, 2016 until February 18, 2016 on Nasdaq Stockholm First North. Subscription for shares can also be made without subscription rights, but without a guaranteed allotment.
94.6 percent of the rights issue was subscribed based on subscription rights. In addition, 112.3 percent of the rights issue was subscribed without the exercise of subscription rights. In total, 206.9 percent of the overall number of shares were subscribed as part of the rights issue. Shares subscribed for without preferential rights have primarily been allocated to those who have subscribed for shares on the basis of preferential rights.
7,373,140 new shares will be issued as part of the rights issue, of which 319,528 comprise Series A shares and 7,053,612 Series B shares. On account of the rights issue, the number of shares in Diamyd Medical will increase to 29,492,562. The Company will receive proceeds of MSEK 22.1 before issue expenses.
* On January 27, 2016, Diamyd Medical announced that its Board of Directors, with authorization from the Annual General Meeting held on November 26, 2015, decided to offer shareholders to subscribe for new shares at a substantial discount compared to yesterday’s market price. The offer means that three existing shares shall entitle to subscription for one new share at SEK 3. The subscription period is planned to commence on February 8, 2016 and extend until February 22, 2016.
Holders of existing shares have preferential rights to subscribe for new shares at a ratio determined by the number of shares owned on the record date of February 3, 2016. Holding of Series A shares entitles to subscribe for Series A shares and holding of Series B shares entitles to subscribe for Series B shares. One existing share in Diamyd Medical entitles the holder to one (1) subscription right. 3 subscription rights carries entitlement to subscription for one (1) new share. The issue price has been set at SEK 3.00 per share. The total issue comprises a maximum of 7 373 141 new shares, of which 319 528 Series A shares and 7 053 613 Series B shares. The total issue proceeds at full subscription will amount to approximately MSEK 22.1 before issue expenses. The subscription period will extend from February 8, 2016 until February 22, 2016.
Therapeutic area: Autoimmune diseases - Metabolic diseases
