The Board of Active Biotech AB proposes that the Annual General Meeting resolve to make a guaranteed rights issue of approximately SEK 160 M
Active Biotech has five projects in clinical phase, of which laquinimod and RhuDex® are managed and financed by partners. The clinical projects that are managed and financed on a proprietary basis are TASQ, 57-57 and ANYARA, all of which are proceeding according to plan. The potential value of the projects increases in pace with their advancement in clinical development, thereby continuously raising shareholder value. In 2008/09, new information and clinical data will be published relating to all three of these projects.
To strengthen the company's financial position and further drive the development of the company's clinical portfolio, the Board of Active Biotech has resolved to propose that the Annual General Meeting resolve to make a new share issue of approximately SEK 160 M with preferential rights for the shareholders.
It is proposed that the issue shall entitle existing shareholders with preferential rights to subscribe for one new share for each twelve shares held at an issue price of SEK 40 per share.
MGA Holding AB, with 30.01 percent of the shares and votes, and Nordstjernan AB, with 14.98 percent of the shares and votes, have committed to subscribe for the full amount of shares corresponding to their preferential rights. In addition, Nordstjernan AB has undertaken, if the issue is not fully subscribed, to subscribe for any additional shares that are not subscribed for with preferential rights in return for a customary guarantee commission. Accordingly, the issue is guaranteed in its entirety.
A formal notice of the Annual General Meeting to be held on May 7 will be published in Svenska Dagbladet and Post- och Inrikes Tidningar on Wednesday, April 9, and will be distributed in the form of a press release. A prospectus relating to the issue will be made public prior to the commencement of the subscription period.
The complete press release is found below.
Active Biotech AB (OMX Nordic: ACTI) is a biotechnology company focusing on research and development of pharmaceuticals. Active Biotech has a strong R&D portfolio with pipeline products focused on autoimmune/inflammatory diseases and cancer. Most advanced projects are laquinimod, an orally administered small molecule with unique immunomodulatory properties for the treatment of multiple sclerosis, as well as ANYARA for use in cancer targeted therapy, primarily renal cancer. Further key projects in clinical development comprise the three orally administered compounds TASQ for prostate cancer, 57-57 for SLE and RhuDex® for RA.
Active Biotech is required under the Securities Markets Act to make the information in this press release public. The information was submitted for publication at 8.30 a.m. CET on 7 April 2008.
Active Biotech AB
P.O. Box 724, 220 07 Lund
Tel +46 (0)46-19 20 00
Fax +46 (0)46-19 20 50
The Board of Active Biotech AB proposes
This press release does not constitute an offer of any securities of Active Biotech. The rights issue is not directed towards shareholders or other investors in the United States of America, Canada, Japan or Australia or other countries where participation would require further prospectuses, registration or other measures than those pursuant to Swedish law. No shares, interim shares, subscription rights or other securities of Active Biotech have been or will be registered under the United States Securities Act of 1933, under the securities laws of any state of the United States or under any province law in Canada. Therefore, no new shares, interim shares, subscription rights or other securities of Active Biotech may be offered or sold, renounced, taken up or delivered in the United States or Canada except pursuant to an exemption from registration.