Dignitana AB (publ) (“Dignitana” or the “Company”) today announced that the Company has successfully conducted a directed new issue of units consisting of shares and warrants, which has now raised proceeds to Dignitana of SEK 42 million before deduction of issue costs. These proceeds will be used to aggressively increase the growth rate of the company with a focus on the new scalp cooling device, DigniCap Delta. This new FDA cleared and CE marked system introduces an improved global business model consisting of one-time and recurring revenue. At full exercise of the warrants, Dignitana will be provided with additional SEK 42 million before deduction of issue costs.
Dignitana's Board of Directors has, as authorized by the annual general meeting on 15 May 2019, decided to carry out a directed new share issue of shares and warrants (units) that raises approximately SEK 42 million to the Company, before deduction of issue costs. Each unit is comprised of two (2) shares and one (1) warrant with the right to subscribe to one (1) new share. The investors are a mix of institutional and private, both Swedish and international, led by Nyenburgh Investment Partners, 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.
The number of shares covered by the new issue amounts to 6,460,000 and increases the Company's share capital by SEK 6,460,000 to SEK 55,059,155. The share price of SEK 6.50 per share has been determined through an accelerated book building process. The warrants are issued without consideration. The new issue of shares entails a dilution of approximately 11.7 percent of the share capital and 11.7 percent of the number of votes in the Company after the new issue of units.
One (1) warrant (TO 7) entitles the right to subscribe for one (1) share in the Company at a subscription price of SEK 13.00. Subscription for shares in the Company on the basis of warrants (TO 7) may take place during the period from 1 October 2020 until 15 October 2020.
Upon full exercise of all warrants (TO 7) issued in the directed share issue, the Company's share capital will increase by no more than SEK 3,230,000 by issuing no more than 3,230,000 shares. The Company's share capital will, in full exercise of the warrants, amount to SEK 58,289,155 divided into 58,289,155 shares. If the warrants are fully exercised, they will entail a dilution of approximately 5.5 percent of the share capital and 5.5 percent of the number of votes in the Company after the warrants have been fully exercised.
The reason for deviating from shareholders' preferential rights is the Board’s view that it is beneficial for Dignitana and its shareholders to diversify 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 2019.
“This additional funding enables Dignitana to significantly accelerate our growth plans with the Delta unit as the focus of our efforts. It is an honour to have Nyenburgh Investment Partners, a recognized leader in life sciences investing, join our cap table and this addition will help us to continue to move this Company forward. This issue was structured to reinforce the achievement of our long-term financial goals and enable the Company to reach a cash flow positive position. We are pleased to welcome these new investors - all of whom have joined in our mission to provide superior scalp cooling technology to patients around the world,” said William Cronin, CEO of Dignitana AB.
Stockholm Corporate Finance acted as financial advisor and sole bookrunner and Fredersen Advokatbyrå acted as legal advisor in connection with the new issue of units.
This is information that Dignitana AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the above contact, for publication at 08.30 (CET) on 2 September 2019.
For more information
William Cronin, CEO, Dignitana AB, firstname.lastname@example.org
Mikael Wahlgren, Deputy Mnaging Director, Dignitana AB, email@example.com
About Dignitana AB (publ)
Dignitana AB is the world leader in clinically superior scalp cooling technology. The company produces The DigniCap® Scalp Cooling System, a patented medical cooling device that offers cancer patients the ability to minimize hair loss during chemotherapy. FDA cleared since 2015, DigniCap provides continuous cooling with high efficacy, safety and patient comfort. Hailed internationally as a life-changing medical advancement for cancer patients, The DigniCap Scalp Cooling System was invented in 1996 by a Swedish Oncology nurse and has been available in Europe since 2001. Dignitana AB is listed on Nasdaq First North Growth Market in Sweden with headquarters in Lund, Sweden and operations based in Dallas, Texas in the United States. Company subsidiaries are Dignitana, Inc. in the United States and Dignitana S.r.l. in Italy. Erik Penser Bank AB, Certified Adviser, +46 (0) 8 463 83 00 firstname.lastname@example.org www.penser.se Learn more at www.dignitana.se and www.dignicap.com.
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 42 M&A advisors and investment banks in 43 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. www.stockholmcorp.se
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