Egetis Therapeutics raises approximately SEK 180 million through an oversubscribed rights issue
May 19, 2022
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Stockholm, Sweden, May 19, 2022. Egetis Therapeutics AB (publ) (“Egetis” or the “Company”) (Nasdaq Stockholm: EGTX) announced on March 21, 2022, that the Board of Directors had resolved to carry out a guaranteed issue of shares with preferential rights for the Company’s existing shareholders (the “Rights Issue”). The Board of Directors’ resolution of the Rights Issue was approved by an extraordinary general meeting held on April 13, 2022. Today, Egetis hereby announces that the Rights Issue was oversubscribed. Through the Rights Issue, Egetis will receive proceeds amounting to approximately SEK 180 million before transaction costs.
The result of the Rights Issue shows that 44,755,164 new shares, corresponding to approximately 90.4 percent of the Rights Issue, have been subscribed for with subscription rights. Additionally, 5,840,471 shares were subscribed for without subscription rights of which 4,765,404 shares, corresponding to 9.6 percent of the Rights Issue, have been allotted to investors that have subscribed for shares without subscription rights. The Rights Issue is thus oversubscribed.
The purpose of the Rights Issue is to finance the preparations for regulatory submissions for market approval in EU and US, initiate the establishment of a commercial infrastructure in Europe and US for Emcitate® and pre-launch activities, as well as general corporate purposes, in addition to providing financial flexibility.
Egetis’ CEO Nicklas Westerholm comments: “We are pleased with the great interest to participate in our Rights Issue and are thankful for the continued support of our current shareholders, in particular specialist life science investor Flerie Invest AB for their commitment to increase their shareholding. Additionally, we further strengthen the specialist investor base in Egetis through Linc AB and welcome them as a new shareholder. The new funds contributed through the Rights Issue will be vital to continue the step-wise establishment of a commercial infrastructure in the EU and the US for Emcitate® as well as pre-launch activities.”
As confirmation of allotment of shares subscribed for without subscription rights, a contract note will be sent on or about May 20, 2022. Subscribed and allotted shares must be paid in cash in accordance with the instructions in the contract note. The allotment of shares subscribed for without preferential rights has been carried out in accordance with the allotment principles set out in the prospectus published by Egetis on April 28, 2022. Nominee-registered shareholders will receive notice of allotment and payment in accordance with the procedures of the nominee.
Following the Rights Issue, Egetis’ share capital will increase by approximately SEK 2,606,347, from approximately SEK 8,687,822 to approximately SEK 11,294,169 and the number of shares in Egetis will increase by 49,520,568, from 165,068,560 shares to 214,589,128 shares.
The shares subscribed for with subscription rights are expected to be registered with the Swedish Companies Registration Office (the “SCRO”) on or about May 31, 2022 and are expected to begin trading on Nasdaq Stockholm on June 3, 2022.
The shares subscribed for without subscription rights are expected to be registered with the SCRO on or about May 31, 2022 and are expected to begin trading on Nasdaq Stockholm on June 3, 2022.
Pareto Securities AB acts as Sole Manager and Bookrunner in connection with the Rights Issue. Advokatfirman Lindahl KB acts as legal advisor to Egetis, and White & Case Advokat AB acts as legal advisor to the Pareto Securities AB in connection with the Rights Issue.
For further information, please contact:
Nicklas Westerholm, CEO
+46 (0) 733 542 062
Yilmaz Mahshid, CFO
+46 (0) 722 316 800
Karl Hård, Head of Investor Relations and Communications
+46 (0) 733 011 944
About Egetis Therapeutics AB
Egetis Therapeutics is an innovative and integrated pharmaceutical company, focusing on projects in late-stage development for commercialization for treatments of serious diseases with significant unmet medical needs in the orphan drug segment.
The Company’s lead candidate Emcitate is under development for the treatment of patients with monocarboxylate transporter 8 (MCT8) deficiency, a highly debilitating rare disease with no available treatment. In previous studies (Triac Trial I and a long-term real-life study) Emcitate has shown highly significant and clinically relevant results on serum T3 levels and secondary clinical endpoints. As a result of fruitful regulatory interaction Egetis intends to submit a marketing authorisation application (MAA) for Emcitate to the European Medicines Agency (EMA) in the first half of 2023 based on existing clinical data.
In the US, after discussions with the FDA, Egetis will conduct a small randomized, placebo-controlled study in 16 patients to verify the results on T3 levels seen in previous clinical trials and publications. Egetis intends to submit a new drug application (NDA) in the US for Emcitate in mid-2023 under the Fast-Track Designation granted by FDA.
Emcitate is currently being investigated in Triac Trial II, a Phase II/III study in very young MCT8 deficiency patients (<30 months of age) exploring potential disease modifying effects of early intervention from a neurocognitive and neurodevelopmental perspective. The recruitment target of 16 patients was reached in the beginning of April 2022. Results are expected in the first quarter of 2024 and are expected to be submitted post-approval to regulatory authorities shortly thereafter.
Emcitate holds Orphan Drug Designation (ODD) for MCT8 deficiency and resistance to thyroid hormone type beta (RTH- β) in the US and the EU. Emcitate has been granted Rare Pediatric Disease Designation (RPD) which gives Egetis the opportunity to receive a Priority Review Voucher (PRV) in the US, after approval.
The drug candidate Aladote is a first in class drug candidate developed to reduce the risk of acute liver injury associated with paracetamol (acetaminophen) poisoning. A proof of principle study has been successfully completed and the design of the upcoming pivotal Phase IIb/III study with the purpose of applying for market approval in the US and Europe for Aladote has been finalized after completed interactions with FDA, EMA and MHRA. Aladote has been granted ODD in the US and an application for ODD was submitted in the EU in the first quarter of 2021. There is an ongoing dialogue with EMA on the appropriate scope of the indication for an ODD in the EU.
Egetis Therapeutics (STO: EGTX) is listed on the Nasdaq Stockholm main market. For more information, see www.egetis.com
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