The Board of Directors of Targovax has signed a joint demerger and merger plan, respectively, for the transfer of the operational activities of the company to its wholly-owned subsidiary, Targovax Solution AS.

The transfer is proposed carried out as a “drop-down demerger” where the company demergers operations and assets to its subsidiary Athomstart Invest 586 AS. Immediately after the demerger, Athomstart Invest 586 AS merges with the company’s wholly owned subsidiary, Targovax Solution AS, whereby the merger consideration is issued in the company and corresponds to the share capital decrease amount in the company in connection with the demerger.

A pure group structure

The background for the proposed drop-down demerger is that the Board of Directors finds it desirable to establish a pure group structure, with separate operating companies rather than having operations in the listed parent company.

On this basis, the Board of Directors will propose that the Annual General Meeting to be held on 20 April 2022 approves the demerger and merger plan, with their respective appendices, both dated 14 March 2022, in addition to adopting the other corporate resolutions that are required in order to implement the drop-down demerger.

The drop-down demerger is expected to be completed during June 2022, subject to the approval by the Annual General Meeting.

Photo of Erik Digman Wiklund, CEO, Targovax