Dignitana Announces Private Placement Offering

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Dignitana Release - wkr0006.pdf

Lund, Sweden, JULY 2, 2015—Dignitana AB (ticker: DIGN on Nasdaq OMX First North), a world leader in medical scalp cooling technology, announced today that it plans to complete a non-brokered, “best efforts” private placement Offering of up to 2,500,000 units of Dignitana (the “Company”) at a price of 11.25 SEK per unit for aggregate gross proceeds of up to 28,125,000SEK.

The transaction, dated July 1, 2015, was carried out by the Dignitana Board of Directors and authorized by the annual general meeting of shareholders, on April 24, 2015. The total outstanding shares will increase to 16,774,164, and will generate a dilution by 14.9%. Investors in the Offering include two American institutional investors (Green Park and Golf Ventures (GPG) and C3 Device Partners), as well as a group of private investors.

Proceeds from the sale of the shares will be used to expand the Company’s U.S. product development and distribution systems, implement measures to reduce production costs, and provide working capital.

Dignitana is the only scalp cooling company to have completed a U.S. Food and Drug Administration (FDA) approved clinical trial; FDA marketing clearance is currently pending. Results of a multi-center, pivotal scientific investigation support the Company’s claim that the scalp cooling system DigniCap® is efficient in reducing the likelihood of chemotherapy-induced hair loss.

“We are both excited and honored to have attracted such strong interest from these forward-looking U.S. investors who are focused on the development of promising health tech innovations,” said Jan Richardsson, CEO of Dignitana. “Their unique network, knowledge and experience will be instrumental in positioning Dignitana for success in our anticipated U.S. market launch of our scalp cooling system DigniCap®, which is already in wide use throughout Europe, Australia and Latin America.”

“Rigorous scientific study of Dignitana’s scalp cooling technology puts it in a class by itself,” said Clay Heighten, M.D., founding member of Green Park and Golf Ventures. “The ability to invest in a product with this much potential to improve quality of life for patients, one that has also earned the respect of physicians and investigators at some of the world’s most important medical centers is rare. We are excited to back this major medical advancement.”

“We see Dignitana’s DigniCap system as a product that will enhance the lives of many women who are suffering through the challenges of cancer. We believe the company has a game-changing product with enormous potential,” said financial industry veteran and C3 Devices Partner Tom Joyce, who is also Executive Chairman of Arxis Capital, “This technology could positively impact medical healthcare options today and in years to come.”

C3 Device Partner, William Cronin, will join the board of Dignitana AB upon closing of this transaction and intends to assume the role of COO of Dignitana Inc, a wholly owned subsidiary of Dignitana AB, pending FDA Clearance of the Dignitana scalp cooling system DigniCap®.

Media Contact:

Caren Browning                                                                                                           Jan Richardsson

King + Company                                                                                                           Dignitana Chief Executive Officer

00 1 212 561-7464                                                                                                     + 46 46 16 30 92

Caren.Browning@kingcompr.com                                                                            Jan.Richardsson@dignitana.se  

About Dignitana AB (publ)
Dignitana is a Swedish public company, based in Lund, and manufacturer of medical cooling devices. Our core product - the DigniCap® System - is a patented scalp-cooling system for preventing or reducing hair loss for chemotherapy patients. Dignitana is continuously researching and developing new products and use for the DigniCap® System. Dignitana AB is listed on the OMX Nasdaq First North Stockholm. For more information visit www.dignitana.com

About the DigniCap® System
The DigniCap® System protects cells, and ultimately your hair, by reducing the concentration of chemotherapy being delivered to your scalp area. The DigniCap® System is developed to provide continuous cooling with high efficacy, safety and acceptable patient comfort.