The Board of Directors of Oasmia has resolved on a new issue of shares with preferential rights for existing shareholders of approximately SEK 151 million.
The purpose of the Rights Issue is to finance the continued development of the company and its projects in accordance with its business plan and strategy, it states. Shareholders in Oasmia have preferential right to subscribe for one new share per every five existing shares, i.e. a subscription ratio of 1:5. The subscription price has been set to SEK 1.68 per share which, assuming that the Rights Issue is fully subscribed, amounts to issue proceeds of approximately SEK 151 million before the deduction of issue costs.
“The transformation initiated when I joined eighteen months ago has already helped to build a solid foundation for the future by reducing unnecessary operating expenditure, eliminating risks such as legacy litigation, and building and progressing a promising pipeline of hard-to-treat cancer projects. This Rights Issue aims to strengthen Oasmia’s balance sheet to help us achieve the next step in our transformation and make further progress towards becoming a Nordic oncology powerhouse, focused on hard-to-treat cancers,” says Francois Martelet, Chief Executive Officer of Oasmia.
Broadening the pipeline
Since March 2020, the new management and board has transformed Oasmia into a company with a team with the expertise to develop oncology assets from early-stage development through to partnering and commercialization. In order to build value, Oasmia has adopted a growth strategy focusing on broadening the pipeline through acquisition and in-licensing of additional oncology assets.
In 2021, Oasmia initiated the first step of its string-of-pearls strategy through the acquisition of clinical stage oncology asset Cantrixil. Additional assets are continuously being evaluated with the aim of broadening the project portfolio further in 2022, the company states.
Oasmia to become Vivesto
To highlight the company’s vision of creating a Nordic oncology powerhouse, focused on hard-to-treat cancers, the Board of Directors has proposed that the Extraordinary General Meeting on 21 February 2022 resolves to amend the company’s name to Vivesto. Vivesto reflects the company’s commitment to enhancing quality of life for patients with cancer, and its focus on R&D and innovation, it states.
“Vivesto reflects our optimism for the future and our commitment to improving survival and quality of life for patients with hard-to-treat and late-stage cancers through R&D and innovation.”
“Since I became CEO in March 2020, the new management team and Board has set out a focused strategy to transform the business and build an oncology-focused specialty pharmaceutical company with a diversified portfolio. We’ve strengthened our finances by reducing unnecessary operational expenditure and resolved a number of inherited legal issues, at the same time as driving the value of our existing portfolio and expanding our R&D capabilities to make us an attractive partner for promising oncology assets. As we continue to develop Cantrixil, the first in-licensed therapy in our string of pearls strategy and focus on additional in-licensing and M&A opportunities, we believe this is the right time to mark the transformed prospects of our business with a new identity. Vivesto reflects our optimism for the future and our commitment to improving survival and quality of life for patients with hard-to-treat and late-stage cancers through R&D and innovation,” says Francois Martelet, CEO.
The Rights Issue
The proceeds from the Rights Issue is intended to fund ongoing business activities including management and administration, sales and marketing activities together with partners and business development activities targeting additional acquisition and in-licensing opportunities (approximately 40 percent), development of the company’s two clinical stage assets; Cantrixil and Docetaxel micellar (approximately 25 percent), research and development regarding the company’s technology platform and pre-clinical stage projects (approximately 35 percent).
The subscription period runs from 8 March 2022 through 22 March 2022. The record date for the Rights Issue is 4 March 2022. The last day of trading in Oasmia’s shares including right to receive subscription rights in the Rights Issue is 2 March 2022 and the first day of trading in Oasmia’s shares without receiving subscription rights in the Rights Issue is 3 March 2022. Trading in subscription rights will take place on Nasdaq Stockholm during the period from 8 March 2022 through 17 March 2022.
The company’s largest shareholder, Per Arwidsson through Arwidsro Investment AB and Fastighets AB Arwidsro, representing approximately 24.8 percent of the total number of shares and votes in Oasmia, has undertaken to subscribe for its pro-rata share of the shares in the Rights Issue. Additionally, a consortium of external investors have given guarantee commitments to Oasmia of SEK 113 million, corresponding to approximately 75.2 percent of the Rights Issue. Thus, the Rights Issue is fully secured. The Rights Issue comprises a maximum of 89,673,909 shares.
The Board of Directors’ resolution on the Rights Issue is subject to approval by the Extraordinary General Meeting on 21 February 2022.
Photo of Francois Martelet, CEO