Date: 2014-11-05
Type of information: Capital increase
Company: Active Biotech (Sweden)
Investors:
Amount:
Funding type: capital increase
Planned used: The Board of Directors of Active Biotech has decided to focus the company\'s resources on the two projects in late clinical phase and on new proprietary molecules discovered in-house. After completed clinical studies, no further scientific activities will be performed with respect to the projects ANYARA and paquinimod. The two projects in late clinical phase are both out-licensed. However, the company has retained all the commercial rights for tasquinimod in North and South America as well as Japan for out-licensing once Phase III results have been obtained. The laquinimod project is focused on the treatment of neurodegenerative diseases. The three diseases in which clinical development is ongoing are relapsing remitting multiple sclerosis (RRMS), primary progressive multiple sclerosis (PPMS) and Huntington\'s disease. Study results are expected in the first six months of 2016 which, if positive, will be considered pivotal. The project has undergone, and is currently undergoing, a highly comprehensive clinical development program, and completed and ongoing investments in the project by Active Biotech and its partner are estimated to total about SEK 5 billion. The tasquinimod project is being developed for the treatment of cancer, primarily metastatic Castrate Resistant Prostate Cancer (mCRPC). Study results are expected in the first six months of 2015 which, if positive, will be considered pivotal. Completed and ongoing investments in the project by Active Biotech and its partner are estimated to total about SEK 2 billion. In addition, Active Biotech is pursuing a preclinical project, ISI. This project is based on preclinical studies and has potential treatment applications in both degenerative diseases and cancer. The initial selection of a candidate drug (CD) for cancer therapy is planned for 2015. The rights issue at hand will provide Active Biotech with the financial stability required pending the outcome of the ongoing Phase III studies, where both projects have significant commercial potential. If the pivotal results for tasquinimod are obtained in the first six months of 2015, the Company is of the opinion that this financial stability will be required to maximize the project\'s commercial value in negotiations with potential partners for the Company\'s own territories. The Company\'s current liquidity and this proposed new share issue, combined with revenues from existing and anticipated agreements are, according to present-day plans, assumed to be sufficient to finance operations until such time as a positive cash flow can be generated.
Others: * On 4 November 2014, the board of directors of Active Biotech resolved, subject to approval by the shareholders\' meeting, on a rights issue with pre-emptive rights of approximately SEK 225 million, at full subscription. The rights issue strengthens Active Biotech\'s financial position and its position in discussions with existing and new potential new partners. The shareholders of the Company have pre-emptive rights to subscribe for the new shares, whereby five existing shares entitle the subscription of one new share. The subscription price is SEK 15 per share. Subscription shall be made during the period 8 - 22 December 2014. Active Biotech\'s largest shareholders, with total holdings of approximately 49 per cent of the Company\'s shares and votes, have undertaken to subscribe for their respective pre-emptive parts of the rights issue. The Company\'s largest shareholders MGA Holding AB, Nordstjernan AB and Investor AB through Duba AB, as well as Peter Thelin (privately and through companies), with a combined holding of approximately 49 per cent of the number of shares and votes of the Company, have undertaken to subscribe for their respective pre-emptive parts of the rights issue. The resolution of the board is subject to approval by the extraordinary shareholders\' meeting that will be held on 1 December 2014. The above-mentioned shareholders have also undertaken to vote in favor of the rights issue at the shareholders\' meeting. Notice to the shareholders\' meeting will be published through a separate press release today.
Therapeutic area: Cancer - Oncology - Neurodegenerative diseases
