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Dignitana receives SEK 42 million in a directed new issue of units

Dignitana has announced that the company has successfully conducted a directed new issue of units consisting of shares and warrants, which has now raised proceeds to Dignitana of SEK 42 million before deduction of issue costs.

These proceeds will be used to aggressively increase the growth rate of the company with a focus on the new scalp cooling device, DigniCap Delta, the company states. This new FDA cleared and CE marked system introduces an improved global business model consisting of one-time and recurring revenue. At full exercise of the warrants, Dignitana will be provided with additional SEK 42 million before deduction of issue costs.

Diversify the ownership base

The reason for deviating from shareholders’ preferential rights is the Board’s view that it is beneficial for Dignitana and its shareholders to diversify the ownership base with reputable Swedish and international investors, but also that the directed new issue presents the best opportunity for the company to add new capital under attractive conditions. The deviation from shareholders’ preferential rights is made in accordance with the authorization granted by the Annual General Meeting 2019.

“This additional funding enables Dignitana to significantly accelerate our growth plans with the Delta unit as the focus of our efforts. It is an honour to have Nyenburgh Investment Partners, a recognized leader in life sciences investing, join our cap table and this addition will help us to continue to move this Company forward. This issue was structured to reinforce the achievement of our long-term financial goals and enable the Company to reach a cash flow positive position. We are pleased to welcome these new investors – all of whom have joined in our mission to provide superior scalp cooling technology to patients around the world,” said William Cronin, CEO of Dignitana AB.