Stayble Therapeutics AB intends to be listed on Nasdaq First North Growth Market and carries out a new issue in connection to the listing

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND PROVINCES, EVERY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), AUSTRALIA, NEW ZEALAND, JAPAN, CANADA, HONG KONG OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THE PRESS RELEASE.

The Board of Directors in Stayble Therapeutics AB (“Stayble” or “the Company”) announces today their intention to list the Company’s shares on Nasdaq First North Growth Market (“Nasdaq First North”). In connection with the listing, the Company carries out a new unit issue of  approximately SEK 35 million, before deduction of transaction costs, where each unit consists of one share and one warrant free of charge (“the Offering”).

The full terms and conditions for the Offering will be available in a prospectus, which is expected to be published around the 31 of January on the Company’s website www.staybletherapeutics.com.

Nasdaq Stockholm AB has approved Stayble’s application for admission of trading of the Company’s shares and warrants on Nasdaq First North, provided that the Company meets the conditions in Nasdaq First North’s rulebook such as distribution requirements, no later than the first day of trading which is expected at March 9, 2020.

Stayble is a clinical stage pharmaceutical company developing the injection treatment STA363 for disc-related low back pain. The treatment is aimed at patients whose back pain persists after physiotherapy and analgesics. The injection is given once and the effect is expected to remain throughout the entirety of the patient’s life and requires minimal rehabilitation. The Company’s focus is set upon the continued clinical development of the upcoming phase 2b study. Stayble’s vision is to develop STA363 as a new standard treatment for patients suffering from chronic disc-related low back pain.

The Offering in short

  • The Offering consists of a new issue of a maximum of 2,850,000 units, each consisting of one (1) share and one (1) warrant free of charge. The Offering corresponds to approximately SEK 35 million, before issue costs.
  • The subscription price in the Offering is SEK 12.30 per unit, which corresponds to SEK 12.30 per share with warrants free of charge. This corresponds to a pre-money valuation of approximately SEK 50 million. The subscription period for the Offering runs from February 4 until February 18, 2020.
  • Subscription commitments of approximately SEK 28 million, corresponding to approximately 80 per cent of the Offering have been made by the Company’s existing shareholders and external investors. By which SEK 7.9 million, corresponding to approximately 22.5 per cent of the Offering, will be secured through set-off of the short-term loan (which was taken out in October 2019 to start the application to authorities for the upcoming phase 2b-study).
  • Each one (1) warrant of series TO1 gives the right to subscribe for one (1) new share in the Company during the period from November 17 to December 1, 2020. The subscription price of shares subscribed through warrants amounts to the volume-weighted average price of the Company’s share during the period from October 30 to November 13, 2020, with a discount of 30 per cent. However, the subscription price cannot be lower than SEK 12.30 and cannot be higher than SEK 24.60 per share. This gives the Company the opportunity to raise additional SEK 35 – 70 million, before deduction of transaction costs. The warrants are also intended to be admitted to trading.

Background and motive for the Offering

Stayble develops the injection treatment STA363 for degenerative disc disease, also known as   discogenic low back pain. Degenerative disc disease is currently treated with conservative methods such as painkillers and physiotherapy. About 30 per cent of the patients experience an improvement from these treatment methods in the long term, while the remainder suffer from continued pain. About one per cent of the patients undergo surgery, leaving about 70 per cent of the patients without effective treatment. STA363 is intended for patients whose condition does not improve after 6 months of treatment using the conservative methods of today.

STA363 targets the two primary causes of degenerative disc disease: leakage of inflammatory substances and disc instability. The mechanism of action of STA363 is to stabilize the disc segment and reduce the possibility of disc leakage. The drug is developed to permanently reduce the patient's back pain through an x-ray guided injection into the painful disc. The treatment is expected to have an effect within three months and requires only a brief restriction of physical activity after the injection. STA363 is based on lactic acid, which is a well-documented substance in for example dialysis treatment. The concept is globally protected by patent applications, approved in the USA and China, among others. The Company's goal is to develop STA363 as a new standard treatment for patients suffering from degenerative disc disease.

The company has successfully conducted a phase 1b study in 15 patients where 3 doses and placebo were tested. Positive results regarding the safety and tolerability of the treatment were obtained. Based on these positive results, the Company intends to initiate a phase 2b study during the first half of 2020. The Company is now focusing on the continued clinical development and plans to carry out a new issue and listing of the Company's shares and warrants on Nasdaq First North to secure funding for the completion of the phase 2b study.

The issue proceeds from the Offering and the warrants are intended to be used to conduct the current phase 2b study, which includes the production of study material, recruitment, treatment and follow-up of study patients as well as working capital.

Preliminary time table

Publication of the prospectus: January 31, 2020
Subscription period: February 4 – February 18, 2020
Publication of results from the issue: February 21, 2020
Settlement day: Around February 25, 2020
First day of trading: March 9, 2020

Investor meetings

Investor meeting, February 11, 2020, 12 PM in Gothenburg
Investor meeting, February 12, 2020, 12 PM in Malmö
Investor meeting February 13, 2020, 12 PM in Stockholm

For more information, please visit www.staybletherapeutics.com/upcoming-events/

Subscription

Subscriptions of Units shall be made through;

  • Electronic subscription using Bank-ID on Mangold’s website www.mangold.se.
  • Subscription form available on Stayble’s website, www.staybletheraputics.com and Mangold’s website www.mangold.se.

Advisors

Mangold Fondkommission AB are financial advisors and Advokatfirman Schjødt are legal advisors in the Offering

For more information

Andreas Gerward, CEO Stayble Therapeutics AB
andreas.gerward@stayble.se

+46 730 808 397

About Stayble Therapeutics AB

Stayble is a clinical stage pharmaceutical company developing the injection treatment STA363 for disc-related low back pain. The treatment is aimed at patients whose back pain persists after physiotherapy and painkillers. The injection is given once and the effect is expected to remain throughout the entirety of the patient’s life and requires minimal rehabilitation. The Company’s focus is set upon the continued clinical development of the upcoming phase 2b study. Stayble’s vision is to develop STA363 as a new standard treatment for patients suffering from chronic disc-related low back pain.

Mangold Fondkommission AB is the Company’s Certified Adviser and can be reached at +46 (0)8 503 015 50

Important information

The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions by law and recipients of this press release in jurisdictions where this press release has been published or distributed should inform themselves of and follow such legal restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Stayble in any jurisdiction, neither from Stayble nor from someone else.

Any investment decision by reason of the Offering must be made on the basis of all publicly available information relating to the Company. Such information has not been independently verified by the Company's financial advisor. The information contained in this announcement is for background purposes only and does not purport to be complete. Thus, an investor should not solely rely on the information contained in this announcement or its accuracy or completeness.

This press release does not constitute or form part of an offer or solicitation to acquire or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.

The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into the United States, Australia, New Zealand, Hong Kong, Japan, Canada, New Zealand or South Africa or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

This press release is not a prospectus or EU Growth prospectus for the purposes of Regulation (EU) 2017/1129 (the "Prospectus Regulation") and has not been approved by any regulatory authority in any jurisdiction.

Forward-looking statements

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or similar expressions. The forward looking statements in this release are based upon various estimates and assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the assumptions reflected in these forward-looking statements were reasonable when made, it can give no assurances that they will materialise or prove to be correct. Because these statements are based on estimates or are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out, directly or indirectly, in the forward-looking statements as a result of many factors. Such risks, uncertainties and other important factors could cause the actual outcomes to differ materially from the expectations expressed or implied in this announcement by such forward-looking statements. The Company does not provide any guarantees regarding the assumptions underlying the forward-looking statements in this announcement. Nor does the Company accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent actual events or developments. Undue reliance should not be placed on the forward-looking statements in this announcement.

The information, estimates and forward-looking statements contained in this announcement speak only as of the date of this announcement and may be subject to changes without notice. The Company does not undertake any obligation to review, update, confirm or release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.

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