23 AUGUST 2016
BIONOR PHARMA ASA
INTERIM FINANCIAL REPORT
1 JANUARY - 30 JUNE 2016
HIGHLIGHTS Q2 2016
In the second quarter of 2016, Bionor continued its preparation of upcoming trials. A strategic and financial review was initiated and an outline for funding of the company's operations was announced end-May. The company's Board of Directors reiterated its strategy to advance Vacc-4x in clinical development in order to develop a possible functional HIV cure.
EVENTS AFTER THE BALANCE SHEET DATE
On 18 August 2016, the company announced that it had raised a total of NOK 105 million in new equity by an agreement with certain new investors regarding full subscription of a NOK 52.5 million private placement, subject to approval at an extraordinary general meeting 9 September 2016, as well as a proposed, subsequent, fully underwritten rights offering of NOK 52.5 million. Following completion of the private placement, the company will be fully funded under the current strategy for no less than 12 months. The company's main shareholder has committed to vote in favor of the private placement and the rights offering, and not to sell any Bionor shares prior to the extraordinary general meeting.
The current strategy of Bionor is to further advance Vacc-4x in clinical development to developa functional cure for HIV. As a consequence of the new, expected ownershipstructure following the private placement and subsequent fully underwritten rights offering, a new Board of Directors will be elected at the extraordinary general meeting on 9 September 2016.
Accordingly, the company's strategy will be evaluated by the new Board of Directors, which may lead to a reassessment of the company's current short and long-term strategies. Until such further assessments have been undertaken all planning of clinical trials is put on hold.
In connection with the agreement with certain new investors regarding the private placement and fully underwritten rights offering, all operations in Denmark and the U.S. have been terminated or are in the process of being terminated, and the following has been agreed with regard to the company's management and key employees:
Per S. Thoresen, Chairman of the Board of Directors, commented:
" On behalf of the company and the Board of Directors, I am very pleased to confirm that we have succeeded in raising more than NOK 100 million from high quality investors at a decisive moment in the company's history. The Management, Board of Directors and its advisors have looked at various options to strengthen the company's financial situation, and are confident that the proposed solution, which is supported by the company's main shareholder is in the best interest of Bionor and its shareholders. The completion of the private placement and rights offering will create a solid financial environment for Bionor's continued clinical activities after a long period with uncertainty ."
FINANCIAL GUIDANCE FOR 2016
For the full year 2016, Bionor now expects a Core cost base of NOK 52-59 million. Previously, a Core cost base of NOK 58-66 million was expected. The reduced Core cost base is due to cost saving initiatives implemented in Q2 2016. Currently, expected savings will amount to approximately NOK 6 million per quarter when fully implemented by 1 January 2017, excluding any organizational changes implemented in H2 2016.
Following the private placement of NOK 52.5 and subsequent fully underwritten rights offering of NOK 52.5 million, the company will be fully funded under the current strategy for no less than 12 months. The Core cost base is defined as Employee Benefit Expenses plus Other operating expenses.
Per S. Thoresen, Chairman of the Board of Directors, +47 906 14 620
Unni Hjelmaas, Acting CEO, +47 915 19 651, email@example.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
PLEASE SEE THE FULL REPORT IN THE ATTACHED PDF.Bionor H1 2016 Interim Financial Report
Last updated on: 24/08/2016
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