Cantargia Makes a Directed Share Issue of Approximately SEK 106 Million for Increased Investments in the Clinical Development of CAN04
STOCKHOLM, March 21, 2019 /PRNewswire/ -- The board of directors of Cantargia AB (publ) has resolved, pursuant to the general meeting's authorization, on a directed share issue of approximately SEK 106 million. The proceeds from the share issue enable expanded investments in the company's main project, CAN04 (nidanilimab), with a new clinical study in the US and an expansion of the most promising patient sub-group of the ongoing clinical CANFOUR study. CAN04 is an antibody in phase IIa clinical development against non-small cell lung cancer and pancreatic cancer.
In the directed share issue, 6,618,581 new shares are issued at a subscription price of approximately SEK 16.02 per share, which means that the company is provided with approximately SEK 106 million in issue proceeds, before issue costs. The subscription price corresponds to the volume weighted average price of the Cantargia share during the latest 20 trading days.
The investors are a number of Nordic institutional investors; Alecta (approximately SEK 76.5 million), Handelsbanken Fonder (SEK 7.6 million), EWS Foundation (SEK 3.8 million) and Jesem AS (SEK 1.8 million). In addition thereto a number of private investors have subscribed for shares for approximately SEK 16.2 million, through Avanza Pension.
The proceeds from the share issue are intended to be used for two new clinical activities. The first activity is to prepare and carry out a clinical study with CAN04 in the US. The study is intended to be made in a new segment of oncology that is not a part of the ongoing clinical study CANFOUR. As a result, new complementary data will be received which enables a widening of the future market for CAN04. The second activity implies an expansion of the ongoing CANFOUR study in patients with non-small cell lung cancer or pancreatic cancer. As previously announced, treatments of patients in Phase IIa were initiated in January 2019 and the study is following plan with expected results in the beginning of 2020. The proceeds from the share issue will enable the next step of development, immediately following the report of these results. An additional 30-50 patients in the most promising sub-group of one these diseases may then be included during 2020. By focusing on groups of patients most likely to respond, further value-adding effective data will be obtained. In parallel, the company may initiate the preparations for a controlled clinical study with CAN04.
As a result of the share issue, the Company is deemed to be financed up and until H1 2021 and the new clinical studies described above are financed.
"We are delighted over the great confidence in our business, evidenced by this financing. We will now be able to take two important steps, accelerating the development of CAN04 towards the market. We envisage great possibilities for CAN04 to become an important part of the future cancer treatment", says Göran Forsberg, CEO of Cantargia.
The reasons for the deviation from the shareholders' pre-emptive rights are to raise capital in a time-efficient and cost-efficient manner and to provide the Company with additional institutional investors.
"The new shareholders give additional strength to our already solid shareholder base" Göran Forsberg continues.
The share issue entails a dilution of approximately nine percent of the number of shares and votes in the company. Through the share issue, the number of outstanding shares and votes increases by 6,618,581 from 66,185,811 to 72,804,392. The share capital increases by SEK 529,468.48 from SEK 5,294,864.88 to SEK 5,824,351.36.
Asperia and Erik Penser Bank have advised Cantargia in the transaction. Advokatfirman Vinge is legal adviser.
For further information, please contact
Göran Forsberg, CEO
Telephone: +46 (0)46-275 62 60
E-mail: goran.forsberg@cantargia.com
This is information that Cantargia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 20.00 CET on March 21, 2019.
About Cantargia
Cantargia AB (publ), reg. no. 556791-6019, is a biotechnology company that develops antibody-based treatments for life-threatening diseases. The basis for this is the protein IL1RAP that is involved in a number of diseases and where Cantargia has established a platform. The main project, the antibody CAN04 (nidanilimab) is being studied in the clinical phase I/IIa CANFOUR with a primary focus on non-small cell lung cancer and pancreatic cancer. The study is conducting both monotherapy and combination therapy. Cantargia's other project, CANxx, is in the research phase and is aiming to develop a IL1RAP binding antibody optimised for the treatment of autoimmune and inflammatory diseases.
Cantargia is listed on Nasdaq Stockholm (ticker: CANTA). More information about Cantargia is available at http://www.cantargia.com.
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