NeuroVive Receives SEK 28.2 Million in a Directed New Share Issue
LUND, Sweden, March 7, 2019 /PRNewswire/ -- NeuroVive Pharmaceutical AB (Nasdaq Stockholm: NVP) (OTCQX: NEVPF) today announced that the company has successfully conducted a directed new issue of shares, which has raised proceeds to NeuroVive of SEK 28.2 million before issue costs. These proceeds will be used primarily to accelerate clinical development activities.
NeuroVive's Board of Directors has, as authorized by the annual general meeting on 27 April 2018, decided to carry out a directed new share issue that raises approximately SEK 28.2 million to the company, before issue costs. The investors are reputable Swedish and international investors led by Nyenburgh Investment Partners. The number of shares covered by the new issue amounts to 20,897,854 and increases the company's share capital by SEK 1,044,892.70 to SEK 9,297,629.55. The issue was carried out at a market-based discount rate, and an issue share price of SEK 1.35 per share has been determined after negotiation at arm's length with the investors, corresponding to a 5.1 percent discount on the closing price of the company's share at Nasdaq Stockholm on March 6, 2019.
The reason for deviating from shareholders' preferential rights is the Board's view that it is beneficial for NeuroVive and its shareholders to further broaden the ownership base with reputable Swedish and international investors, but also that the directed new issue presents the best opportunity for the company to add new capital under attractive conditions. The deviation from shareholders' preferential rights is made in accordance with the authorization granted by the Annual General Meeting 2018.
"The additional funding is truly valuable for NeuroVive and it will extend our runway to reach our goals as well as make a clear difference primarily to our continued clinical development activities of KL1333. Furthermore, our ownership base has now been strengthened with a specialized international investor, Nyenburgh, indicating confidence in our project activities," commented NeuroVive's CEO Erik Kinnman.
Stockholm Corporate Finance acted as financial advisor and sole bookrunner.
This information is information that NeuroVive Pharmaceutical AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 8.30 a.m. CET on 7 March 2019.
NeuroVive Pharmaceutical AB (publ)
Medicon Village, SE-223 81 Lund, Sweden
Tel: +46(0)46-275-62-20 (switchboard)
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NeuroVive Pharmaceutical AB is a leader in mitochondrial medicine, with one project in clinical phase I (KL1333) for genetic mitochondrial diseases and one project in clinical phase II development for the prevention of moderate to severe traumatic brain injury (NeuroSTAT®). The R&D portfolio also consists of projects for genetic mitochondrial disorders, cancer and NASH. The company advances drugs for rare diseases through clinical development into the market, with or without partners. For projects for common indications the goal is out-licensing in the preclinical phase. A subset of compounds under NeuroVive's NVP015 program has been licenced to Fortify Therapeutics, a BridgeBio company, for local treatment development of Leber's Hereditary Optic Neuropathy (LHON). NeuroVive is listed on Nasdaq Stockholm, Sweden (ticker: NVP). The share is also traded on the OTCQX Best Market in the US (OTC: NEVPF).
About Nyenburgh Investment Partners (NYIP)
NYIP is a dedicated life science investment partnership based in Amsterdam, with a strong focus on European life sciences companies that develop innovative solutions for human health. NYIP select and scale its investments based on an efficient and thorough due diligence process that looks at the potential of the innovation being developed. For more information please see: www.nyip.nl.
About Stockholm Corporate Finance
Stockholm Corporate Finance is a Swedish, independent and privately owned financial advisor offering qualified transaction based advisory services by acting in capital raisings, changes in ownership, acquisition, merger and acquisitions (M&A) in listed and privately held companies. Stockholm Corporate Finance is the exclusive Swedish partner in the global network of M&A Worldwide consisting of 43 M&A advisors and investment banks in 44 countries. Stockholm Corporate Finance is an investment firm which is supervised by the FSA and is a member of the trade organization SwedSec Licensing AB. For more information please see: www.stockholmcorp.se
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NeuroVive receives SEK 28.2 Million in a directed new share issue