Decision on rights issue subject to approval at Extraordinary General Meeting

On February 10, 2017, the Board of Oncology Venture Sweden AB ("Oncology Venture") decided to – subject to approval at Extraordinary General Meeting – conduct a rights issue of up to 1 259 349 shares at an issue price of 42.00 SEK per share. Fully subscribed rights issue provides Oncology Venture approximately 52,9 million SEK before issuing costs. Beforehand, the company has agreed on subscription commitments amounting to approximately 18,9 million SEK, which equals about 35,7 % of the rights issue’s total volume. Notice of Extraordinary General Meeting will be published shortly.

“2016 has been an eventful year for Oncology Venture where we have taken a big leap towards our goal to develop precision medicines for cancer patients. Efforts to develop LiPlaCis®, APO010 and Irofulven combined with its Drug Response Predictor – DRPTM – is progressing well. In addition, we have formed two spin-out companies – something that increases the likelihood of achieving success in the business significantly. We have built up a large number of exciting activities during 2017 and we are in an important stage of development. We are now planning a rights issue in order to be ready for the projects we have in the pipeline. I am confident that the coming year with up to seven products in the pipeline will be even more exciting than last year”, said Peter Buhl Jensen, Adjunct professor, M.D., PhD and CEO for Oncology Venture.
 

Goals and prioritized activities

At the time of going public in July 2015, it was stated the over-all goal amongst others was to in-license 5 drugs and with these drugs perform 5 focused Phase 2 studies in a three-year period. In addition, the goal is within a three-year period to generate at least two drug candidates for out-licensing (or sale).

Operations are proceeding with the company's three previously in-licensed drug candidates; APO010, Irofulven and LiPlaCis®. APO010 is in early clinical Phase 1/2 development – Clinical Trial Application has been submitted to the Danish authorities. Start of study is expected in Q1 2017 if existing product is approved as planned. Irofulven is in a Phase 2 study in patients with prostate cancer. Clinical Trial Application is expected to be filed in Q2 2017. Regarding LiPlaCis® three out of four Danish centers in total are now active in recruiting 12-15 metastatic Breast Cancer patients screened and expected to be highly likely responders to LiPlaCis®. The Phase 1/2 study is expected to be finalized in Q3 2017. In addition, the company's partner Cadila Pharmaceuticals Ltd. is about to initiate four Phase 2 trials and a Phase 3 trial with LiPlaCis©. In addition, the spin-out company 2X Oncology Inc.'s pipeline has two signed term sheets and one term sheet under negotiation and the spin-out company OV SPV2 is currently negotiating the final transaction terms regarding an oral tyrosine kinase inhibitor from a big pharma company. 

The Board of Oncology Venture has also decided to prepare the company for changing marketplace for the company's shares from AktieTorget to Nasdaq Stockholm Small Cap, which is planned to take place during 2018.

Planned rights issue to increase the pace of the company

Oncology Venture is planning a rights issue with the purpose of raising capital to finance the development of project number four relating to a Big Pharma tyrosine kinase inhibitor in the OV-SPV2, regulatory activities with companion diagnostics to obtain LiPlaCis®-approval in the US, and support the company's recently signed commercial agreements with Cadila Pharmaceuticals Ltd. In addition, the proceeds is intended to finance building of the infrastructure in Scandinavia to support screening in Oncology Venture and 2X Oncology Inc. for metastatic breast cancer and ovarian cancer. Since the company is also planning a listing change to Nasdaq Stockholm Small Cap in 2018, part of the proceeds is intended to finance preparatory work for a planned listing change.

Summary of the Offer

  • Subscription Period: 16 – 30 March, 2017.
  • Record Date and Preferential: Last day of trading in Oncology Ventures stock shares including the right to receive subscription rights is 8 March, 2017 and the first day of trading excluding the right to receive subscription rights is 9 March 2017. The record date is March 10, 2017.  Each currently held stock share qualifies for one (1) subscription right. Possession of eight (8) subscription rights entitle to subscription of one (1) new share.
  • Issue price: 42,00 SEK per stock share.
  • Volume of Issuance: Oncology Venture is hereby conducting a rights issue of 52 892 658 SEK, comprising a maximum of 1 259 349 shares. The rights issue is also open to the public.
  • Subscription commitments: Oncology Venture has received subscription commitments of approximately 18,9 million SEK, which equals around 35,7 % of total volume of issuance.
  • Number of shares before the rights issue: 10 074 794 shares.
  • Valuation (pre-money): Approximately 423,1 million SEK.
  • Trading in subscription rights: Trading in subscription rights will be done at AktieTorget during the time period 16 – 28 March, 2017.
  • Trading in BTA: Trading in BTAs (paid subscription share) will take place on AktieTorget from 16 March 2017 until Bolagsverket (the Swedish Company Authority) has registered the new rights issue. This registration is expected to take place at the end of April 2017.

Full terms and conditions, information on subscription commitment as well as the prospectus and the folder will be published on the companys (www.oncologyventure.com), AktieTorgets (www.aktietorget.se) and Sedermera Fondkommissions (www.sedermera.se) respective websites no later than when the subscription period of the offering begins.

Financial advisor

Sedermera Fondkommission is the financial advisor to Oncology Venture in connection with the planned rights issue.

For further information, please contact

Ulla Hald Buhl , COO and Chief IR & CommunicationsMobile: +45 2170 1049uhb@oncologyventure.com or Peter Buhl Jensen , CEOMobile: +45 21 60 89 22E-mail: pbj@oncologyventure.com

This information is information that Oncology Venture Sweden AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 13th February 2017.

About Oncology Venture Sweden AB

Oncology Venture Sweden AB is engaged in the research and development of anti-cancer drugs via its wholly owned Danish subsidiary Oncology Venture ApS. Oncology Venture has a license to use Drug Response Prediction – DRP™ – in order to significantly increase the probability of success in clinical trials. DRP™ has proven its ability to provide a statistically significant prediction of clinical outcomes from drug treatment in cancer patients in 29 of the 37 clinical studies that were examined. The Company uses a model that alters the odds in comparison with traditional pharmaceutical development. Instead of treating all patients with a particular type of cancer, patients’ tumors genes are screened first and only those who are most likely to respond to the treatment will be treated. Via a more well-defined patient group, the risk and costs are reduced while the development process becomes more efficient.

The current product portfolio: LiPlaCis for Breast Cancer, Irofulven developed from a fungus for prostate cancer and APO010 – an immuno-oncology product for Multiple Myeloma.

Oncology Venture has spun out two companies in Special Purpose Vehicles: 2X Oncology Inc. a US based company focusing on Precision medicine for women’s cancers with a pipeline of three promising phase 2 product candidates and Danish OV-SPV 2 will test and potentially develop an oral phase 2 Tyrosine Kinase inhibitor.

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