Xbrane Biopharma has carried out a directed share issue raising gross proceeds of SEK 380 millions
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, SINGAPORE, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.
Xbrane Biopharma AB (publ) (“Xbrane Biopharma” or the “Company”) has based on the authorization granted by the annual general meeting held on May 6, 2021, and in accordance with what the Company indicated in a press release earlier today on June 30, 2021, successfully carried out a directed share issue of SEK 380 millions at a subscription price of SEK 135 per share (the “Directed Share Issue”). The subscription price was determined through an accelerated book-building procedure. A number of Swedish and international institutional investors, including Lancelot Asset Management, Serendipity Group, Swedbank Robur Fonder and TIN Fonder have subscribed for shares in the Directed Share Issue.
The board of directors of the Company have, pursuant to the authorization granted by the annual general meeting held on May 6, 2021, resolved on the Directed Share Issue of 2,817,700 new shares at a subscription price of SEK 135 per share. Through the Directed Share Issue the Company will receive gross proceeds of SEK 380 millions before transaction related costs. The Board of Directors deems, in the light of the accelerated book building procedure completed by Kempen & Co and Pareto Securities AB acting as Joint Global Coordinators and Joint Bookrunners and Handelsbanken Capital Markets acting as Co-Manager, that the Directed Share Issue, including the determination of the subscription price, has been determined on market terms. The purpose of the Directed Share Issue and the reason for the deviation from the shareholders' preferential rights, is to diversify the shareholder base among international institutional investors and at the same time raise capital on favorable terms in a time and cost-efficient manner.
The Company intends to use the net proceeds from the Directed Share Issue to finance:
- Submission of Marketing Authorization Application for Xlucane™ in the US and Europe and production of launch material
- Scale-up of Xcimzane™ production process to commercial scale and initiation of Phase I clinical trial together with commercialization partner
- Continued pre-clinical development of Xdivane™ and initiation of additional biosimilar development programs
- General corporate purposes
“The biosimilar market is one of the fastest growing segments in the pharmaceutical industry with patent expirations of many blockbusters biological drugs in the coming decade. We have a unique opportunity to become a world-leading developer of biosimilars with our patented platform technology, our experienced team and newly established development lab. With this funding, we take one step closer towards our vision, drive our existing development programs ahead according to plan and initiate one new development program per year. We are grateful for the support and trust from existing and new investors” says Martin Åmark, CEO of Xbrane.
The Directed Share Issue will entail a dilution of approximately 11.3 percent. The number of shares and votes outstanding in the Company will increase by 2,817,700 from 22,222,206 to 25,039,906. The share capital will increase by approximately SEK 631,689 from approximately SEK 4,981,909 to approximately SEK 5,613,598. The subscription price corresponds to a discount of approximately 8.5 percent in relation to the closing price on Nasdaq Stockholm on June 30, 2021.
In connection with the Directed Share Issue, the Company has, subject to customary exceptions, agreed to a lock-up undertaking on future share issuances for a period of 180 days following completion of the Directed Share Issue. Members of the Company’s board of directors and management, have, subject to customary exceptions, agreed to not sell their shares in the Company for a period of 180 days after the date of registration of the shares issued in connection with the Directed Share Issue with the Swedish Companies Registration Office. The existing shareholders STADA Arzneimittel AG and Serendipity Group AB have, subject to customary exceptions, agreed to not sell their shares in the Company for a period of 90 calendar days after the date of registration of the shares issued in connection with the Directed Share Issue with the Swedish Companies Registration Office.
Kempen & Co and Pareto Securities acted as Joint Global Coordinators and Joint Bookrunners. Handelsbanken Capital Markets acted as Co-Manager. Baker McKenzie Advokatbyrå KB is acting as legal adviser to the Company. White & Case Advokat AB is acting as legal adviser to the Joint Bookrunners and Co-Manager in connection with the Directed Share Issue.
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 Xbrane Biopharma in any jurisdiction, neither from Xbrane Biopharma nor from someone else.
This announcement does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in the new shares. Any investment decision in connection with the Directed Share Issue must be made on the basis of all publicly available information relating to the Company and the Company’s shares. Such information has not been independently verified by Joint Global Coordinators and Joint Bookrunners. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. Joint Global Coordinators and Joint Bookrunners is acting for the Company in connection with the transaction and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for giving advice in relation to the transaction or any other matter referred to herein.
This announcement does not constitute a recommendation concerning any investor’s option with respect to the Directed Share Issue. Each investor or prospective investor should conduct his, her or its own investigation, analysis and evaluation of the business and data described in this announcement and publicly available information. The price and value of securities can go down as well as up. Past performance is not a guide to future performance.
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 Australia, Hong Kong, Japan, Canada, New Zeeland, Singapore, South Africa, 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.
This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Xbrane Biopharma has not authorized any offer to the public of shares or rights in any member state of the EEA and no prospectus for an offering has been or will be prepared in connection with the Directed Share Issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.
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”); (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order; or (iii) any other person to whom it may otherwise lawfully be communicated (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.
This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. 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, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to 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 press release, unless it is not required by law or Nasdaq Stockholm's rule book for issuers.
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 in Xbrane Biopharma 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 Xbrane Biopharma may decline and investors could lose all or part of their investment; the shares in Xbrane Biopharma offer no guaranteed income and no capital protection; and an investment in the shares in Xbrane Biopharma 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 Directed Share Issue. Furthermore, it is noted that, notwithstanding the Target Market Assessment, Joint Global Coordinators and Joint Bookrunners will only procure investors who meet the criteria of professional clients and eligible counterparties.
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 Xbrane Biopharma.
Each distributor is responsible for undertaking its own target market assessment in respect of the shares in Xbrane Biopharma and determining appropriate distribution channels.