Successful Private Placement of NOK 70 million
Reference is made to stock exchange notice dated 15 September 2010 regarding engagement of DnB NOR Markets as financial advisor in connection with the Company’s equity financing.
As part of the Company’s long-term financing, DiaGenic has carried out a conditional private placement of NOK 70 million towards existing and new investors (the “Private Placement”) based on a book building process.
The purpose of the Private Placement is to finance operating costs and to secure the financial strength to achieve key milestones towards cash-flow break-even expected in 2H 2012..
The Private Placement was subscribed approximately 1.4 times. The subscription price in the Private Placement was set to NOK 0.50 per share and gross proceeds from the Private Placement will thus be NOK 70 million. The shares allocated in the Private Placement will constitute approximately 67% of the outstanding shares in the Company after registration of the capital increase. When the capital increase is registered, the total amount of shares in DiaGenic will increase from 70 236 520 to 210 236 520 shares, each with a nominal value of NOK 0.05 per share. The share capital will increase from NOK 3 511 826 to NOK 10 511 826 at the registration of the capital increase. Shares subscribed for in the Private Placement are expected to be delivered to the subscribers VPS-accounts on or about 3 November 2010 subject to the necessary listing prospectus being approved by Oslo Børs within this date and made public, as well as registration of the Private Placement with the Norwegian Register of Business Enterprises.
To promote equal treatment of the shareholders, the board of directors of DiaGenic has decided to propose a subsequent repair offering (the “Subsequent Offering”) directed at existing shareholders of the Company that did not participate in the Private Placement. In the Subsequent Offering it will be proposed to issue up to 60 million shares at NOK 0.50 per share directed towards shareholders in the Company as of 6 October 2010 who were not allocated shares in the Private Placement. For the Subsequent Offering it will be proposed to issue subscription rights that will be listed and tradable.
The Private Placement and the Subsequent Offering is conditional upon necessary resolutions in the general meeting. The board of directors will call for an extraordinary general meeting on 29 October 2010 with a proposal to resolve the Private placement and the Subsequent Offering. The Subsequent Offering is expected completed in late November/early December 2010.
The shares in DiaGenic will trade without the right to participate in the Subsequent Offering from and including today 7 October 2010 (ex-date).
DnB NOR Markets acts as manager for the Private Placement and the Subsequent Offering.
For further information, please contact:
Henrik Lund (chairman of the board), phone +47 909 71 219
About DiaGenic ASA
DiaGenic is an innovative Norwegian biotechnology company that seeks to create value for patients, partners, and investors by developing new and more patient friendly methods for early detection of diseases. DiaGenic is currently a world leader in analyzing gene expression signatures related to disease in easily available clinical samples such as peripheral blood. This unique method is based on the principle that even when a disease is localized at a specific part of the body, secondary responses, which are also characteristic of the disease, can be measured in other parts of the body. DiaGenic has developed and CE marked two blood based diagnostic tests, BCtect® for early breast cancer detection and ADtect® for early detection of Alzheimer’s Disease. The company protects its technology through an extensive patent portfolio. DiaGenic promotes its products towards leading pharmaceutical and imaging companies, and towards clinicians. DiaGenic is listed on the Oslo Stock Exchange. For more information visit www.diagenic.com