LIDDS AB (“LIDDS” or the “Company”) announced on 11 June 2020 that the Board of Directors, pursuant to the authorization granted by the annual general meeting, has resolved to carry out a new share issue with pre-emption rights for existing shareholders with a maximum of approximately SEK 37.1 million (the “Rights Issue”). The demand was high and the Rights Issue was heavily oversubscribed. Thus, no underwriting commitments have been utilised.
- 2,978,044 shares, corresponding to 96.4 per cent of the Rights Issue, were subscribed for by the use of subscription rights.
- The remaining 112,289 shares have been allocated to those who have subscribed for shares without subscription rights.
- In addition, applications for subscription without subscription rights have been received corresponding to 8,394,846 shares or SEK 100.7 million.
- The subscription rate amounted to 372 percent.
- No underwriting commitments have been utilised.
Outcome of the Rights Issue
The subscription period for the Rights Issue ended on 7 July 2020 and 2,978,044 shares, corresponding to 96.4 percent of the Rights Issue, were subscribed for by the use of subscription rights. The remaining 112,289 shares have been allotted to those who have subscribed for shares without subscription rights. In addition, applications for subscription of 8,394,846 shares, corresponding to SEK 100.7 million, without subscription rights have been received. Accordingly, the subscription rate of the Rights Issue amounted to 372 percent. This means that none of the underwriting commitments have been utilized.
In parallel with the Rights Issue, LIDDS carried out the directed issue of 1,854,200 shares to a number of selected investors, which provided the Company with approximately SEK 22.3 million before issue expenses. The directed issue was carried out at the same subscription price as in the Rights Issue, which was SEK 12 per share.
Comment from Monica Wallter, CEO LIDDS
– In a challenging market, we have now implemented a directed issue and a rights issue with a very high demand. I would like to thank existing and new shareholders who participated in the share issues. The share issues strengthen our position for the future and enable continued investment in our clinical development to reach several important value inflection milestones.
Allotment of shares has been made in accordance with the principles set out in the prospectus that was published by the Company on 17 June 2020. Notice of allotment of shares subscribed for without the use of subscription rights is expected to be distributed on 9 July 2020. Subscribed and allotted shares shall be paid for in cash in accordance with instructions on the contract note. Nominee shareholders will receive notice of allotment in accordance with each nominee's internal routines.
Shares and share capital
LIDDS raises approximately SEK 59.3 million before issue expenses through the Rights Issue and the directed share issue and the Company's share capital will increase from SEK 1,310,301.56 to SEK 1,572,361.81. The number of shares will increase from 24,722,671 shares to 29,667,204 shares when both the share issues have been registered with the Swedish Companies Registration Office (Sw. Bolagsverket), which is expected around week 30 of 2020. Conversion of paid subscribed shares (BTA) to shares will take place thereafter.
Vator Securities is acting as financial advisor to the Company and Advokatfirman Delphi is the legal advisor to the Company in connection with the share issues.
This information is such information LIDDS AB (publ) is obliged to make public in accordance with the (EU) Market Abuse Regulation. The information in this press release has been made public through the agency of the responsible person set out below for publication at the time stated by LIDDS AB’s news distributor GlobeNewswire at the publication of this press release. The responsible person below may be contacted for further information.
Monica Wallter, CEO
E-mail: firstname.lastname@example.org | Phone: +46 737-07 09 22
Anja Peters, CFO
E-mail: email@example.com | Phone: +46 733-26 00 00
This press release is in all respects a translation of the Swedish original press release. In the event of any differences between this translation and the Swedish original, the latter shall prevail.
LIDDS AB (publ) is a Swedish-based pharmaceutical company with a unique drug delivery technology NanoZolid®. NanoZolid® is a clinically validated drug development technology and superior in its ability to provide a controlled and sustained release of active drug substances for up to six months. LIDDS has licensing agreements where NanoZolid® is combined with antiandrogens and in-house development projects in clinical and preclinical phase for cytostatics and immunoactive agents. LIDDS (LIDDS) shares are listed on Nasdaq First North Growth Market. Redeye AB, firstname.lastname@example.org, +46 (0)8 121 576 90, is a Certified Adviser to LIDDS. For more information, please visit liddspharma.com.
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such 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 LIDDS in any jurisdiction, neither from LIDDS nor from someone else.
This press release does not constitute or form part of an offer or solicitation to purchase 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 Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland, the United States 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.
In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.
Information to distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II”); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements”), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in LIDDS may decline and investors could lose all or part of their investment; the shares in LIDDS offer no guaranteed income and no capital protection; and an investment in the shares in LIDDS is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Share Issues.
For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in LIDDS.
Each distributor is responsible for undertaking its own target market assessment in respect of the shares in LIDDS and determining appropriate distribution channels.