ChronTech Pharma raises 25 million SEK (4 million USD) in a private placement
ChronTech Pharma AB has raised 25 million SEK (4 million USD) in a private placement of 80 million shares at the subscription price of (rounded) 0.31 SEK per share. The private placement has been subscribed by a group of investors, which include, Sunninghill Investments Ltd, Dr. Simon Kukes, Dr. Prem Lachman, and the Chairman of the Board, Mr Thomas Lynch. Thomas Lynch's participation is subject to approval by a shareholders' meeting. ChronTech Pharma's Board of Directors will convene an EGM for the approval of Mr Thomas Lynch's subscription (of 10 million shares) and for the election of Dr. John Climax, Dr. Simon Kukes and Dr. Prem Lachman as new members of the Board.
In addition to the private placement, ChronTech Pharma will carry out two rights issues of in total approximately 63 million shares. The first rights issue will include 22 million shares at the subscription price 0.20 SEK. The second rights issue will include approximately 41 million shares at the subscription price 0.31 SEK. The 80 million shares that are issued in the private placement will not carry right to participate in the two rights issues. ChronTech Pharma's Board of directors will also ask the EGM for an authorization to issue up to 10 million shares at the subscription price of 0.31 SEK and without preferential rights for the shareholders. The purpose with the authorization is to enable ChronTech Pharma to convert a bridge financing loan of 500,000 USD to new shares.
The private placement of 80 million shares increases the number of outstanding shares from 82,219,930 to 162,219,930 and the share capital from SEK 2,466,597.90 to 4,866,597.90.
“We are very pleased to complete the private placement since this secures our development plans to build a strong company. We welcome the new investor group, which we feel brings an extensive biotech experience to ChronTech. The new group of investors were part of the successful transformation of Amarin Corporation plc from a small biotech company to a USD 1.8 billion company after the company reported on two successful phase III clinical trials in hypertriglyceridemia and dyslipidemia. We feel their experience will be very helpful for the success of ChronTech”, says ChronTech’s CEO Anders Vahlne.
For more information, please contact:
Anders Vahlne, CEO and Head of Research, ChronTech Pharma AB
Tel: +46 8 5858 1313, mobile phone: +46 709 28 05 28,
E-mail: anders.vahlne@ki.se
About ChronTech
ChronTech develops the therapeutic DNA vaccines ChronVac-C® and ChronVac-B drugs against chronic hepatitis C virus and hepatitis B virus infections, i.e. chronic infections with jaundice causing viruses which can lead to liver cirrhosis and liver cancer. ChronTech has also developed and further develops a patent pending new type of injection needle for a more effective uptake of DNA vaccines. ChronTech also have part ownership in the wound healing therapy ChronSeal®, and in the new platform technology RAS®. The ChronTech share is admitted to trade on First North. Remium AB is Certified Adviser for ChronTech. For more information, please visit: www.chrontech.se
In the event of any discrepancy between the Swedish and English versions of this press release, the Swedish version will take precedence.