The Board of Directors of Spago Nanomedical has resolved to carry out a rights issue with preferential rights for existing shareholders of up to 61.8 MSEK before issue costs.
Four (4) shares in Spago Nanomedical entitle for subscription of five (5) new shares in the Rights Issue at a subscription price of SEK 1.20 per share. The Rights Issue is secured up to approximately 93.8 percent through subscription commitments and guarantee undertakings.
Accelerate development and initiate clinical studies in cancer patients
The Board of Spago Nanomedical has resolved on the Rights Issue to accelerate development and initiate clinical studies in cancer patients with the company’s radionuclide therapy Tumorad (177Lu-SN201). “The resolution has been made on top of significantly strengthened data package for Tumorad following advances in the project, as well as positive data from the clinical study with the company’s other project, SpagoPix, which support the central treatment principle in Tumorad,” states the company.
The preclinical regulatory studies required to initiate clinical development of Tumorad have been successfully completed. The company recently showed that the drug candidate 177Lu-SN201 significantly inhibits tumor growth and prolongs survival in a preclinical model for colorectal cancer, it states. Interim data from the phase I study with the diagnostic project SpagoPix (SN132D) also show that the company’s functional nanomaterials accumulate in tumors, which is an important step towards a validation of the technology platform in humans.
Clinical Phase I/IIa study
The Rights Issue aims to finance start of the clinical phase I/IIa study with 177Lu-SN201 that is planned to be initiated in 2022. The company’s cash runway is assessed to be secured by the Rights Issue until the beginning of 2024.
“We see great potential shareholder value in advancing and accelerating the development of Tumorad, given a unique treatment principle, a significant market potential and a great interest in radionuclide therapy among both pharmaceutical companies and investors. This capital raising gives us the conditions to focus fully on continuing to build value in Tumorad,” says Mats Hansen, CEO of Spago Nanomedical.
Photo of Mats Hansen: Spago Nanomedical