The subscription period in Initiator Pharma’s rights issue begins today

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Today, on the 2nd of June 2020, the subscription period for Initiator Pharma A/S ("Initiator Pharma" or "the Company") rights issue of units begins. The subscription period runs until the 16th of June 2020. A fully subscribed issue of units and utilized warrants issued in this rights issue will provide Initiator Pharma with a total of approximately MSEK 17.4 (before issue costs amounting to MSEK 1.2 incl. guarantee compensation), of which approximately MSEK 6.96 represents the initial part of the issue and approximately MSEK 10.44 represents the warrants of series TO 2. Prior to the rights issue, Initiator Pharma has received subscription commitments and agreements regarding guarantee of in total approximately MSEK 6.96, corresponding to 100 percent of the initial part of the initial issue volume. Memorandum, teaser, and subscription forms are available through the websites of Initiator Pharma ( and Sedermera Fondkommission ( Sedermera Fondkommission is the financial adviser in the rights issue.

Background and motive

The capitalization is executed in order to finance the development of the Company's drug candidate IP2018 through a Phase IIa clinical study to generate Proof-of-Concept. In preclinical studies, Initiator Pharma has shown that IP2018 has effects on both depression and erectile function, which is a clear differentiation from existing antidepressant drugs on the market at present. Together with the drug candidate IPED2015, a first-class compound for the treatment of erectile dysfunction, which recently received positive phase II results, IP2018 complements the Company's research portfolio. Obtaining Proof-of-Concept will place IP2018 as a new type of treatment for the large number of patients who, due to serious side effects, do not want to use existing marketed drugs. Positive results will also facilitate attractive agreements with major pharmaceutical companies active in the field of depression. In addition to costs related to the clinical work with IP2018, the issue proceeds from the capitalization will also finance costs for IPED2015 as well as costs related to examination of further indications. The costs for IPED2015 will be business development related.

The rights issue in short

  • Issue volume:Through the rights issue a maximum of 710,203 units, corresponding to 1,420,406 shares and 2,130,609 warrants of serie TO 2, are issued . One unit thus consists of two (2) shares and three (3) warrants of series TO 2. Initially, the Company can receive a maximum of approximately MSEK 6.96 and later, through the exercise of warrants of series TO 2, which are issued through the right issue, an additional MSEK 10.44. It is noted that there are further outstanding warrants of series TO 2, which were issued in connection with the recently completed directed issue. These can add approximately MSEK 6 to the Company.
  • Subscription price: SEK 9.80 per unit, corresponding to SEK 4.90 per share. The warrants are issued free of charge.
  • Subscription period: The subscription period runs from June 2, 2020 until June 16, 2020.
  • Subscription commitments and guarantee: Initiator Pharma has received subscription commitments and a guarantee commitment of a total of approximately MSEK 6.96, which corresponds to 100 % of the initial part of the rights issue. The subscription commitments correspond to approximately MSEK 1.21 (about 17.44 % of the issue proceeds). The guarantee commitment in the rights issue correspond to approximately MSEK 5.75 (about 82.56 % of the issue proceeds). The subscription commitments and the guarantee commitment have not been secured through advance transaction, bank guarantee or similar. Cash premium compensation of 10 % is paid for the guarantee commitment.
  • Pre-emption right: The parties who were shareholders on the record date, the 27th of May 2020, have pre-emption right to subscribe in the rights issue. For each old share, the shareholder receives one unit right. Thirty-four (34) unit rights entitles the shareholder to subscribe for one (1) unit. One (1) unit consists of two (2) shares and three (3) warrants of series TO 2.  The public also has the right to subscribe in the rights issue.
  • The last day of trading including the right to participate in the rights issue was May 25, 2020. 
  • The first day of trading excluding the right to participate in the rights issue was May 26, 2020.
  • Trading with unit rights: Trading with unit rights will take place on the Spotlight Stock Market during the period from June 2, 2020 through June 12, 2020.
  • Trading with BTU: Trading with BTU will take place on the Spotlight Stock Market during the period from June 2, 2020 until registration of the rights issue with the Erhversstyrelsen, which is expected to take place on June 30, 2020. Once the rights issue is registered with Erhversstyrelsen, BTU will be converted into shares and warrants.

Terms and conditions for warrants of series TO 2 in short

  • Each warrant of series TO 2 entitles the holder to subscribe for one (1) new share in Initiator Pharma at a subscription price of SEK 4.90 per new share, which corresponds to the subscription price in the rights issue.
  • The exercise period for warrants of series TO 2 will take place from November 24, 2020, to December 15, 2020.
  • Assuming a fully subscribed directed issue and a fully subscribed rights issue and provided that all the warrants of the TO 2 series are exercised, this will result in a total dilution of approximately 12 % for the existing shareholders based on the number of shares in the Company after warrant exercise.


There is a possibility to listen to the Company’s presentation and hear more about the future plans and the offer. This will take place through a webcast in collaboration with Biostock in accordance with the below details:

  • Wednesday, the 3rd of June 2020, at 2 pm. Press THIS link to come to the presentation. 


IP2018 is a monoamine reuptake inhibitor that inhibits the synaptic reuptake of serotonin, norepinephrine and dopamine. IP2018 preferably inhibits serotonin followed by reuptake of dopamine, while it has significantly less effect on norepinephrine reuptake. IP2018 has an antidepressant effect in animal models of depression and effect on erectile function. In addition, there is a robust preclinical data package, a phase I study, and a positive emission tomography (PET) study in patients showing binding to serotonin reuptake and dopamine reuptake transporters.


IPED2015 is a small molecule that in vitro inhibits the dopamine transporters (DAT), the noradrenaline transporter (NAT), and the sodium-dependent serotonin transporters (SERT). IPED2015 binds in vivo preferentially to DAT. IPED2015 is a potent inhibitor of DAT and has been found to increase dopamine in the synapses and to induce an erection in male rats. Besides, IPED2015 has been found to act through a peripheral pathway in erectile tissue, where increases in dopamine concentrations lead to the relaxation of erectile smooth muscle.

Financial adviser

Sedermera Fondkommission is the financial adviser in connection with Initiator Pharma’s rights issue. 

For further information regarding the rights issue, please contact:

Sedermera Fondkommission

Phone: +46 40 - 615 14 10


For further information about Initiator Pharma, please contact:

Claus Elsborg Olesen, CEO

Telephone number: +45 6126 0035 


About Initiator Pharma

Initiator Pharma is a biotechnology company based in Aarhus, Denmark. The company"s main asset, IPED2015, is a candidate drug intended for patients with erectile dysfunction. The treatment is expected to improve the quality of life for a growing number of patients who are not responding to or cannot be treated with existing drugs on the market. Read more on

About erectile dysfunction

ED is a sexual dysfunction characterised by the inability to achieve or maintain an erection during sexual intercourse. More than 150 million men around the world suffer from ED; a number that is expected to increase to more than 320 million by 2025 due to an ageing population and an increased incidence of lifestyle illnesses such as diabetes. ED entails an impaired quality of life in patients due to various psychosocial factors, such as low self-esteem, depression, sadness, anger, frustration, anxiety and relationship problems (1, 2, 3).  

  1. Shabsigh R, et al. (1998) Increased incidence of depressive symptoms in men with erectile dysfunction. Urology52(5):848–852.
  2. Mccabe MP, Althof SE (2014) A systematic review of the psychosocial outcomes associated with erectile dysfunction: Does the impact of erectile dysfunction extend beyond a man’s inability to have sex? J Sex Med11(2):347–363.
  3. Nguyen HMT, Gabrielson AT, Hellstrom WJG (2017) Erectile Dysfunction in Young Men—A Review of the Prevalence and Risk Factors. Sex Med Rev5(4):508–520.

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