On August 26, 2020 Sprint Bioscience AB (Nasdaq First North Premier Growth Market: SPRINT) reported its interim report for the period January – June 2020 (Press release, Sprint Bioscience, AUG 26, 2020, View Source [SID1234564026]). The full report is available on the company’s website.
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January – June – Financial summary
Net sales during the period amounted to SEK 11.3 (23.9) million
Operating profit for the period amounted to SEK -19.6 (-1.8) million
Profit after tax for the period amounted to SEK -22.3 (-3.3) million
Earnings per share before and after dilution for the period amounted to SEK -1.81 (-0.35)
Second quarter – Financial summary
Net sales during the quarter amounted to SEK 5.8 (19.3) million
Operating profit for the quarter amounted to SEK -10.1 (4.9) million
Profit after tax for the quarter amounted to SEK -12.5 (4.5) million
Earnings per share before and after dilution for the quarter amounted to SEK -1.01 (0.47)
Significant events during the period
On April 30, the company announced that a study published in the scientific journal Science Advances presents preclinical results showing that Vps34 inhibitor SB02024 strongly activates the immune system in tumors of malignant melanoma and colorectal cancer with reduced tumor growth as a result. The results support the continued development of SB02024 both as a single drug and in combination with other immunooncological drugs.
On May 13, the Annual General Meeting authorized the Board and on May 22, the Board decided to carry out a new issue of units with preferential rights of approximately SEK 48.5 million and a directed issue of warrants to issue guarantors in the rights issue. At the same time, the company announced that the company was raising a loan financing of SEK 10 million. On May 29, the prospectus for the issue was published.
On May 11, the company announced that they had decided to apply for short-term work for the Company’s employees. Working hours will be reduced to 40 percent from 1 June 2020 and six months onwards. The measure is taken to strengthen the Company’s financial sustainability as the ongoing covid-19 pandemic has affected the possibilities of entering into new, revenue-generating partner agreements in the near future.
On May 13, the company announced that after a series of preclinical research advances in the VADA project, it has chosen to publish the project’s target protein. The aim is to develop drug substances that inhibit the protein vaccinia-related kinase 1 (VRK1) in order to enhance the effect of immuno-oncological therapy, radiation therapy and cytotoxic drugs. The company believes that this approach provides a unique position in the market for innovative pharmaceutical projects and will now initiate contacts with potential partners.
On May 14, the exercise period for subscription of shares in the company began with the support of warrants of series TO2 2019. A warrant of series TO2 2019 entitled to subscribe for a new share and a total of 47,031 shares were subscribed, corresponding to a utilization rate of 4.38 percent. The final outcome after recalculation of the subscription price and the number of shares due to the company’s rights issue of units meant that each warrant entitles the holder to subscribe for 1.09 shares at a subscription price per share of SEK 7.54. Registration of shares with the Swedish Companies Registration Office took place in July.
On 22 June, the company announced that the new share issue of units decided by the Board on 22 May 2020 had been completed. The outcome shows that the issue was subscribed for at 126% and a total of 2,939,400 units were issued. Issue proceeds before issue costs amounted to SEK 48.5 million. The Board has also decided on a directed issue of 2,016,667 warrants of series TO4 2020/2021 to the issue guarantors in the rights issue as compensation for their guarantee commitments. Upon full exercise of the warrants in the issue and to the guarantors, the Company will receive an additional maximum of SEK 40.9 million before issue costs during Q1 2021.
EVENTS AFTER THE END OF THE REPORTING PERIOD
On July 15, it was announced that Karin Almqvist has decided to leave her position as CFO, but will remain in the company until October 15, 2020.
The company announced on July 1 that Petra Pharma, in accordance with the possibilities provided in the parties’ license agreement, has transferred the license agreement and the subsequent collaborative project PIP4K2 to the newly formed company Ravenna Pharmaceuticals, Inc. Ravenna Pharmaceuticals thus takes over responsibility for further development and financial commitments to Sprint Bioscience. The project aims to develop a new type of drug for leukemia.
On August 25, the company announced that from September 1, it will return to full capacity by completing the short-term work that began on June 1.