The company has successfully conducted a directed new issue of shares, which has raised proceeds to NeuroVive of SEK 28.2 million before issue costs.
These proceeds will be used primarily to accelerate clinical development activities, states the company in their press release.
The investors are reputable Swedish and international investors led by Nyenburgh Investment Partners, states the company. The number of shares covered by the new issue amounts to 20,897,854 and increases the company’s share capital by SEK 1,044,892.70 to SEK 9,297,629.55. The issue was carried out at a market-based discount rate, and an issue share price of SEK 1.35 per share has been determined after negotiation at arm’s length with the investors, corresponding to a 5.1 percent discount on the closing price of the company’s share at Nasdaq Stockholm on March 6, 2019.
Further broaden the ownership base
The reason for deviating from shareholders’ preferential rights is the Board’s view that it is beneficial for NeuroVive and its shareholders to further broaden 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 2018.
“The additional funding is truly valuable for NeuroVive and it will extend our runway to reach our goals as well as make a clear difference primarily to our continued clinical development activities of KL1333. Furthermore, our ownership base has now been strengthened with a specialized international investor, Nyenburgh, indicating confidence in our project activities,” said commented NeuroVive’s CEO Erik Kinnman.
Photo: Erik Kinnman, NeuroVive