NeuroVive Pharmaceutical AB has successfully completed a new share issue, bringing NeuroVive close to SEK 28.2 million before issue costs. The proceeds from the rights issue will be used primarily to accelerate clinical development activities.
NeuroVive’s Board of Directors has, with the support of authorization from the Annual General Meeting on April 27, 2018, decided to carry out a directed new share issue which will provide the company with approximately SEK 28.2 million before issue costs. The investors are considered Swedish and international investors and are led by Nyenburgh Investment Partners. The number of shares covered by the rights 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 of shares is carried out at a market share discount and a subscription price of SEK 1.35 per share has been established after negotiation at arm’s length with the investors and corresponds to a 5.1 percent discount on the closing price of the company’s share on Nasdaq Stockholm on March 6, 2019.
The reason for the deviation from the shareholders’ preferential rights is that the Board considers it advantageous for NeuroVive and the shareholders to further broaden the ownership base with reputed Swedish and international investors, but also that the targeted new share issue is seen as the best opportunity to add new capital to attractive conditions for the company. The deviation from the shareholders’ preferential rights is made in accordance with the Board’s authorization from the 2018 AGM.
“The added funding is very valuable for NeuroVive. It will both increase our opportunities to reach our goals and make a clear difference, especially for our continued clinical development activities within KL1333. In addition, our owner base has now been strengthened with a specialized international investor, Nyenburgh, which indicates confidence in our project activities, ”commented Erik Kinnman, NeuroVive’s CEO.
Advisor
MAWW Stockholm acted as a financial advisor and sole book-runner in connection with the New Issue.