Cyxone raises SEK 0.9 million in a first directed share issue under the agreement with Dr Kask to jointly develop a new treatment of Covid-19
Cyxone AB (publ), a Swedish biotech company engaged in developing new treatments for autoimmune diseases, has today resolved on a directed share issue of 202,274 shares, with a net proceed of SEK 0.9 million. The share issue is made under the investment option agreement with Dr Kalev Kask, which has been put in place to jointly develop a new treatment for Covid-19.
The board of directors of Cyxone has resolved on a directed share issue in accordance with the investment option agreement that the Company entered into with Dr Kalev Kask, which was described in more detail in the Company’s press release on 10 June 2020. The investment option is part of the negotiated payment to Dr Kask for acquiring the exclusive rights to a new patent application for which he is the inventor. This patent application is considered to be instrumental for building value in the parties’ joint project to develop a new treatment for Covid-19. Dr Kalev Kask has now exercised his right to call on a first directed share issue under the agreement, which in its entirety gives right to acquire a further 4,705,754 shares prior to 1 October 2020. The resolution is passed with authorization from the annual general meeting held on 4 of June 2020.
Cyxone will raise about SEK 0.9 million, as one investor has subscribed for and been allotted 202,274 shares at a price per share of SEK 4.45, which is on par with 100% of the volume weighted average price during a 10 day period before entering into the agreement. The subscription price is 71.2 percent of the share closing price on 20 July 2020. The board of directors considers the subscription price and other conditions for the private placement to be on market terms.
The private placement will result in a dilution of 0.41 percent in relation to the number of shares and votes in the Company after registration of the private placement. The number of shares and votes in the Company will thus increase from 49,080,380 to 49,282,654. The registered share capital will increase from SEK 3,704,181.681262 to SEK 3,719,447.652010.
Aqurat Fondkommission AB acts as issuing agent and Fredersen Advokatbyrå AB as legal advisors.
Tara Heitner, CEO
Tel: +46 70 781 88 08
211 22 Malmö, Sweden
Cyxone AB is a clinical stage biotech company with a portfolio of immunomodulating drugs for the treatment of autoimmune diseases such as multiple sclerosis (MS) and rheumatoid arthritis (RA). The company’s drug portfolio is based on two technological pillars in the form of oral molecules and cyclotide-based drugs that inhibit key processes in the body’s cells that are typically associated with various immune-related disorders. Cyxone’s technologies have the potential to address an unmet need and provide new effective and safe medicines that can improve the quality of life for patients affected by autoimmune diseases. The company has two drug candidates, T20K for MS in clinical phase I program and Rabeximod for RA in clinical phase II program. Cyxone’s Certified Adviser on the Nasdaq First North Growth Market is Mangold Fondkommission AB, +46 (0)8-503 015 50, email@example.com. www.cyxone.com