On May 2, 2023 Xspray Pharma AB reported a rights issue of units amounting to approximately SEK 300 million (the "Rights Issue"), with two warrant series approximately amounting together up to an additional SEK 300 million upon full exercise (Press release, Xspray, MAY 2, 2023, View Source [SID1234650111]). The Board of Director’s resolution on the Rights Issue was based on the authorization granted by the extraordinary general meeting held on 25 May 2023. Today, Xspray hereby announces the outcome of the Rights Issue. Through the Rights Issue, Xspray will receive total proceeds of approximately SEK 251 million before transaction costs.
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"It is a sign of strength that we have been able to successfully complete this rights issue in a challenging market. We now have sufficient funds to launch our innovative first product Dasynoc in the US market within the next 12 months, thus transforming Xspray Pharma from a research company into a commercial, profitable pharmaceutical company. I want to extend a warm thank you to all long-term and new investors for your trust." comments Per Andersson, CEO of Xspray Pharma.
The outcome of the Rights Issue shows that 2,718,687 units, equivalent to approximately 72 percent of the Rights Issue, were subscribed with the support of unit rights. In addition, 25,015 units were subscribed for without the support of unit rights, of which 25,015 units, equivalent to approximately 1 percent of the Rights Issue, were allocated to investors who subscribed without the support of unit rights. 389,244 units, corresponding to approximately 10 percent of the Rights Issue, have been allotted to the parties who entered into guarantee undertakings in the Rights Issue. The Rights Issue is thus subscribed to approximately 83 percent and Xspray will receive proceeds amounting to approximately SEK 251 million before transaction costs.
The purpose of the Rights Issue is primarily to finance the pre-launch activities for Dasynoc in the US as well as general corporate purposes, ongoing operating costs, and the continued development of product candidates XS003 nilotinib and XS008 axitinib.
Notice of allotment of units subscribed without the support of unit rights will be sent through a settlement note around 28 June 2023. Subscribed and allocated units are to be paid in cash in accordance with the instructions on the settlement note. The allocation of units subscribed without preferential rights has been carried out in accordance with the allocation principles stated in the prospectus published by Xspray on 30 May 2023. Nominee-registered shareholders will receive information regarding allocation and payment according to the procedures of the nominee.
Through the Rights Issue, Xspray’s share capital will increase by approximately SEK 6,265,892, from approximately SEK 22,680,408 to approximately SEK 28,946,300, and the number of shares in Xspray will increase by 6,265,892 shares, from 22,680,408 shares to 28,946,300 shares.
The BTU (Sw. "Betald Tecknad Unit") will be tradable on Nasdaq Stockholm until the Rights Issue has been registered with the Swedish Companies Registration Office and the BTUs have been converted into shares and warrants. The last day of trading with BTUs is expected to take place on or around 11 July 2023.
Shares subscribed with the support of unit rights are expected to be registered with the Swedish Companies Registration Office around 6 July 2023 and are expected to start trading on Nasdaq Stockholm around 17 July 2023.
Shares subscribed without the support of unit rights are expected to be registered with the Swedish Companies Registration Office around 6 July 2023 and are expected to start trading on Nasdaq Stockholm around 17 July 2023.
The first day of trading for the warrants of series TO5 and TO6 is expected to be 17 July 2023.