The Board of Directors of Xbrane Biopharma has announced a rights issue of units of approximately SEK 343 million, consisting of shares and warrants of series TO1.
Upon full exercise of the warrants of series TO1, Xbrane will receive approximately up to an additional SEK 78 million. The Rights Issue is conditional upon approval by an Extraordinary General Meeting, planned to be held on 22 February 2024.
The purpose of the Rights Issue is primarily to finance the launch activities of Ximluci in the US, the launch of Ximluci PFS, the production of clinical material for BIIB801, the development and production of clinical material for Xdivane, general corporate purposes as well as pre-payment in cash of the next six amortizations of the convertible bonds to CVI, Investments Inc. In total, approximately 83 percent of the Rights Issue is covered by subscription commitments and intentions, as well as guarantee commitments, corresponding to approximately SEK 285 million.
In connection with the announcement of the Rights Issue, the company has entered into a bridge financing agreement of approximately SEK 50 million at an interest rate of 1.0 percent per month. The Company expects to utilize this bridge financing until settlement of the Rights Issue.
“With this Rights Issue, we are creating the right conditions to reach our most important upcoming milestones: launching Ximluci in the US, launching Ximluci as a pre-filled syringe to accelerate sales in Europe, and lastly manufacturing clinical material for BIIB801 and Xdivane. It also means that we immediately resolve amortizations on the outstanding convertible loan until January 2025, after which we expect to be able to amortize in cash based on positive operational cash flow,” says Xbrane’s CEO Martin Åmark.
Photo of Martin Åmark: Xbrane
