HC Andersen Capital: NeoDynamics carries out a 100 percent secured rights issue of approximately SEK 69 million
NeoDynamics has received subscription commitments from a selection of the Company's existing shareholders, including CEO Anna Eriksrud and chairman Ingrid Salén, amounting to approximately SEK 27.8 million, corresponding to approximately 40 percent of the Rights Issue. Furthermore, the Company has entered into agreements on issue guarantees of approximately SEK 41.5 million, which secures the Rights Issue to 100 percent.
Summary
• One (1) existing share in the Company entitles to one (1) subscription right. One (1) subscription right entitles the holder to subscribe for one (1) new share, i.e., a subscription ratio of 1:1.
• The subscription price is set at SEK 1.15 per new share, which, assuming that the Rights Issue is fully subscribed, results in the Company receiving approximately SEK 69.3 million before deductions for issue costs.
• The record date for the Rights Issue is March 4, 2022, and the subscription period runs from March 9, 2022 to March 23, 2022.
• The last trading day in the NeoDynamics share including the right to participate in the Rights Issue is March 2, 2022.
• Existing shareholders have expressed their support for the Rights Issue through subscription commitments amounting to approximately SEK 27.8 million, corresponding to approximately 40 percent of the Rights Issue. Furthermore, the Company has entered into agreements on issue guarantees of approximately SEK 41.5 million, corresponding to approximately 60 percent of the Rights Issue, which secures the Rights Issue to 100 percent.
• The company intends to publish a prospectus regarding the Rights Issue on March 4, 2022.
The Board's resolution on the Rights Issue is subject to approval by the Extraordinary General Meeting on February 25, 2022 at the Company’s premises at Lejonvägen 14, Lidingö.
Use of issue proceeds:
In the case of a fully subscribed Rights Issue, NeoDynamics will receive approximately SEK 69.3 million, before deductions for issue costs. The issue proceeds from the Rights Issue will be used to enable the Company's business plan and are planned to be allocated in accordance with the following order of priority and with an approximate share of:
- Sales and marketing (approximately 81%)
- Product development, patents, and regulatory work (approximately 17%)
- Investments in fixed assets (CAPEX) and inventories as well as working capital (approximately 2%)
1.
Continued work on building reference centers with opinion leaders in Germany, the United Kingdom and Sweden. Neodynamics established an office in Germany 2021 – Neodynamics GmbH and during 2021 they released a couple of statements regarding new clients in Germany – i.e., Hermann-Josef-Hospital in Erkelenz, a university hospital within the University of Aachen. Earlier 2021 NeoNavia was demonstrated at scientific congresses in Austria and Switzerland. Doctors received the system very well at the congresses which marked a return to a more normal market.
The first results from the German PULSE study were presented at the prestigious British Society of Breast Radiology (BSBR) annual scientific meeting. The study shows that NeoNavia can be used successfully and with a low frequency of side effects for sampling in the axilla
Abstract from the PULSE study carried out in 115 procedures across seven German hospitals show that the device is well suited for use in the axillary lymph nodes, with a high success rate and low rate of adverse events in a broad patient cohort. The patented pulse technology was perceived to stabilize the target lesion and enhance needle control during insertion, and it was possible to obtain multiple samples with a single insertion
NeoNavia is a modern biopsy system with a completely new patented pulse technology that is intended to be used for ultrasound-guided tissue sampling. It consists of a base unit, a handset and three types of biopsy needles. Each needle type is driven by the new pulse technology that provides a more controlled needle insertion and precise placement of the needle in the tumor while enabling high-quality tissue samples from both breasts and lymph nodes. The pulse biopsy system NeoNavia is designed to offer doctors and patients a precise and reliable tissue sampling that enables a correct diagnosis and individualized treatment.
Compared to current biopsy sampling – Neonavia both saves time and money for the healthcare system.
2.
NeoDynamics will present results from the PULSE study illustrating the benefits of the novel biopsy device NeoNavia in challenging axillary lymph nodes, at the SBI/ACR Breast Imaging Symposium in Savannah, Georgia, taking place on May 16-19. The symposium is held to be the most important annual meeting for US breast imaging professionals. The SBI/ACR Breast Imaging Symposium is the most important annual meeting for breast imaging professionals in the US, usually attracting over 1 000 participants.
NeoDynamics plans to file for registration of NeoNavia in the US during the first quarter 2022.
NeoDynamics has a small but very competent organization for the US market. Country Manager Anna Forsberg, who is heading the FDA registration, has more than 30 years of relevant experience in the US market. Magnus Precht is equally experienced in US commercial operations and will be sure to recruit highly skilled and well-established salespeople. To their aid, they have strong support from Matt Colpoys, who was elected to NeoDynamics’ board of directors this spring
NeoDynamics is conducting clinical studies in Germany (PULSE) and the UK (COMPULSE) and intends to secure financing to completion. COMPULSE is a comparative study to investigate the potential benefits of NeoNavia, the first pulse biopsy system, compared to current standard of practice. It is a follow-on study derived from the ongoing German PULSE study
Last but not least NeoDynamics aims at registering NeoNavia in China. The work has good guidance from the company’s largest owner Huasheng Fang, who is strongly connected to local breast centers, as well as board members Jie Bao and Xiao-Jun Xu.
Of the approximately 6 million breast biopsys carried out annually to detect suspected breast cancer, approximately 2,1 million results in a breast cancer diagnosis, a number that increases by roughly 4-5 percent year-on-year. The total market for breast cancer diagnosis is estimated to 750 million dollars annually in 2020.
3.
NeoDynamics needs investments in fixed assets (CAPEX) and inventories as well as working capital.
Participate in our event with CEO Anna Eriksrud The 21st. of February 2022 and learn more about the company: https://hcandersencapital.dk/event/neodynamics-full-year-report-and-latest-development/.
This is a press release from HC ANDERSEN CAPITAL https://hcandersencapital.dk
HC ANDERSEN CAPITAL
Claus Thestrup, CEO Sweden
claus@hcandersencapital.dk
Disclaimer: HC Andersen Capital receives payment from NeoDynamics for a Digital IR / Corporate Visibility subscription agreement.