Tripep carries out a Rights Issue
The Board of Directors of Tripep AB (publ) has on the 11th of August, based on the authorization by the Annual General Meeting resolved to carry out a rights issue consisting of shares and warrants. Every existing share entitles to subscribe for one new share during the period 25 August- 5 September 2008 at the subscription price SEK 2.00 as well as an additional new share at the same subscription price during the period 3 November – 1 December 2008. If the rights issue is subscribed in full it will give the company a capital injection of SEK 16 m (before transaction costs) in the first step and an additional SEK 16 m in the second step. The transaction costs is estimated to SEK 0.8 m.
Background
The purpose of the rights issue is to ensure that Tripep has the capacity it needs to further increase the pace in the ongoing ChronVac-C®-project with the objective to start discussions about outlicensing the project once the study is completed. Further more, if approved by the Medical Product Agency the company will initiate the clinical study of ChronSeal®, Tripeps wound healing therapy project. As well as for hepatitis C, chronic leg ulcers represent a large and rapidly growing market where no effective treatment is available today.
“In the ongoing clinical study of ChronVac-C® we have been able to demonstrate a simultaneous decrease of virus levels in blood and an activation of the patients immune response to hepatitis C. This is a break-through and a proof-of-concept and is very promising for the continuation of the study within a field where there is a clear need of new more efficient treatments. The total market for pharmaceuticals against hepatitis C-infections is estimated to over 4 billion dollar and it is expected to grow to over 8 billion dollar 2012, which supports the substantial commercial potential for the product”, says Tripeps CEO Jan Nilsson.
Terms and conditions for the rights issue
• The number of shares to be issued shall not exceed 8,067,978
• The subscription price shall be SEK 2.00 per share
• Each existing share shall entitle to subscription for one new share
• For each subscribed share a warrant will be received at no cost. Each warrant entitles the holder to subscribe for one new share at SEK 2.00 during the period 3 November – 1 December, 2008. If all warrants are exercised the Company will raise approx. another SEK 16 million.
“By splitting the rights issue in two steps the shareholders that subscribe in step one will be able to get knowledge of the results from the high dose group in the ChronVac-C® study and hopefully also the Medical Product Agency’s decision on ChronSeal®, before deciding on subscription in step two. By doing so it is our hope that we – in the light of the positive results from the first dose groups in the CronVac-C® study - will be an interesting investment alternative that has necessary prerequisites to create value in the short term for both existing as well as new shareholders”, says Tripeps CEO Jan Nilsson.
Time plan for the new issue
• Last day for trading in the share including the right to participate in the new issue is 14 August, 2008
• The record date is 19 August, 2008
• A prospectus is expected to be announced around 22 August, 2008.
• The period for subscription with or without pre-emption rights is 25 August – 5 September, 2008
• Trading in subscription rights takes place during the period 25 August – 2 September, 2008
For more information, please contact:
Jan Nilsson, CEO, Tripep AB
Tel: +46 8 449 84 80, mobile phone: +46 70 466 31 63
E-mail: jan.nilsson@tripep.se
Anders Vahlne, Head of Research, Tripep AB
Tel: +46 8 5858 1313, mobile phone: +46 709 28 05 28
E-mail: anders.vahlne@ki.se
About Tripep
Tripep develops drugs against chronic disease based on proprietary and other parties’ patented and patent pending technologies. Tripep is focusing on the following research projects; wound healing therapy ChronSeal® and a therapeutic vaccine against Hepatitis C, named ChronVac-C®, plus the RAS® technology platform. The Tripep share is admitted to trade on First North. Remium AB is Certified Adviser for Tripep AB. For more information, please refer to the company’s website: www.tripep.se.
In the event of any discrepancy between the Swedish and English versions of this press release, the Swedish version will take precedence.