Active Biotech raises SEK 149 million through a directed share issue
The Board of Directors of Active Biotech has, pursuant to the authorization given by the 2009 annual general meeting, resolved today to issue a total of 1,418,000 new shares in Active Biotech.
The issue is completed by means of a directed share issue placed with funds managed by Sectoral Asset Management Inc., a global investment manager in the healthcare sector. The shares are issued at a subscription price of SEK 105 per share, which means that the issue proceeds amounts to approximately SEK 149 million before issue expenses. The subscription price was determined on the basis of the current market price of the Active Biotech share on NASDAQ OMX Stockholm and corresponds to the average closing price of the Active Biotech shares during the preceding thirty trading days.
The additional funds will be used to strengthen Active Biotech's capital base and enable the continued development and value-growth of the project portfolio, of which TASQ, 57-57, ANYARA and ISI are managed and financed on a proprietary basis. The development of laquinimod and RhuDex(TM) are managed and financed by partners. The new issue also strengthens Active Biotech's position with potential partners and hence gives the company increased flexibility as to the timing of these partnerships.
The Board considers it being beneficial for the company and its shareholders to broaden the shareholder base, improve the opportunities of increased liquidity in the share and take advantage of the opportunity to raise capital from a strong, competent investor on attractive terms for the company. The Board believes that the share issue, which in light of the aforesaid is made with deviation from the shareholders' pre-emptive rights, will promote the creation of value for all shareholders of the company.
Tomas Leanderson, CEO of Active Biotech, says: "2009 was a very good year for Active Biotech. We fully enrolled three large clinical studies, obtained "proof-of-concept" for TASQ, the project for prostate cancer treatment, and published a first target molecule for the quinolines (the ISI project). The laquinimod project for the treatment of multiple sclerosis received "Fast Track" status and the phase III program, managed by our partner Teva, is proceeding according to plan. In addition Teva has an ongoing clinical phase II development program with laquinimod for the treatment of Crohn's disease, and will initiate clinical phase II development with laquinimod for the treatment of lupus nephritis and lupus arthritis (www.clinicaltrials.gov). I am very pleased to note the validation of Active Biotech's maturing pipeline by a specialized investor such as Sectoral Asset Management."
Through the issue, the number of shares in Active Biotech increases by 1,418,000 from 64,175,530 to 65,593,530 and the share capital increases by SEK 5,344,927.88 from SEK 241,899,562.60 to SEK 247,244,490.48. MGA Holding AB has undertaken to temporarily lend the number of shares required to facilitate prompt delivery to the subscribers.
Lund, April 1, 2010
Active Biotech AB (publ)
For further information, please contact:
Tomas Leanderson, President and CEO
Tel: +46 (0)46-19 20 95
Hans Kolam, CFO
Tel: +46 (0)46 19 20 44
Göran Forsberg, VP Investor Relations & Business Development
Tel: +46 (0)46-19 11 54
About Active Biotech
Active Biotech AB (NASDAQ OMX NORDIC: ACTI) is a biotechnology company with focus on autoimmune/inflammatory diseases and cancer. Projects in pivotal phase 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 of renal cancer. Further key projects in clinical development comprise the three orally administered compounds TASQ for prostate cancer, 57-57 for SLE and RhuDex(TM) for RA. Please visit www.activebiotech.com for more information.
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 3:00 pm CET on April 1, 2010.
Press release (PDF)