Date: 2014-07-03
Type of information: Private placement
Company: Oasmia Pharmaceutical (Sweden)
Investors: international institutional investors and qualified investors in Sweden
Amount: SEK 50 million (€5.46 million)
Funding type: private placement
Planned used: Oasmia Pharmaceutical intends to use the proceeds from the private placement 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. The company has recently announced that its lead human product Paclical® (paclitaxel) has successfully met its primary objective according to the study design, showing non-inferiority between Paclical and Taxol – both combined with the chemotherapeutic carboplatin – regarding progression free survival (PFS). Oasmia will complete a clinical trial report in the second half of 2014, including a risk/benefit analysis. The data will serve as the basis of a Marketing Authorisation Application to the European Medicines Agency (EMA), which the company intends to submit in early 2015. Last June, Oasmia Pharmaceutical has also extended its production collaboration with Baxter\'s BioPharma Solutions around Oasmia\'s products. Oasmia and Baxter’s BioPharma Solutions, which is the contract manufacturing arm of Baxter International , has signed a Master Manufacturing Agreement to cover future Oasmia products today in clinical or development phase. This agreement is a compliment to the already existing Contract Manufacturing Agreement.
Others: * On July 3, 2014, Oasmia Pharmaceuticals announced that the private placement, which was announced on July 2, 2014, has enabled the company to place 2,500,000 new shares with international institutional investors and qualified investors in Sweden at a price of SEK 20 per share through an accelerated book building procedure. In order to enable the private placement, the Board of Directors of Oasmia has, pursuant to the authorization granted by the annual general meeting held on September 30, 2013, resolved on a directed issue of 2,500,000 new shares. The reason for deviating from the shareholders’ preferential rights by conducting a directed new share issue is to broaden the shareholder base, and that the costs and timing of the procedure collectively, and with sufficient strength, indicate that it is in the Company’s, and thus the shareholders’, interest that the issue is made with deviation from the shareholders’ preferential rights.
Through the issue, the number of shares in Oasmia increases by 2,500,000 from 85,572,330 to 88,072,330 and the share capital increases by SEK 250,000 from SEK 8,557,233 to SEK 8,807,233. The new issue results in an equity dilution of approximately 3 percent after the issue is completed. A large existing shareholder has undertaken to temporarily lend the number of shares required to facilitate prompt delivery of the new shares. Carnegie Investment Bank AB (publ) is acting as financial advisor and sole bookrunner.
Therapeutic area: Cancer - Oncology
