Spago Nanomedical interim report January-March 2021
Successful rights issue strengthens project development
JANUARY – MARCH IN BRIEF
Net sales for the quarter amounted to KSEK 100 (KSEK 100).
- The loss for the quarter amounted to KSEK -6,068 (KSEK -5,054).
- Operating expenses for the quarter amounted to KSEK -7,439 (KSEK -6,769).
- Earnings per share, before and after dilution, for the quarter amounted toSEK -0.18 (SEK -0.24).
- Cash and cash equivalents at the end of the quarter amounted to KSEK 85,225 (KSEK 6 938).
SIGNIFICANT EVENTS DURING THE QUARTER
Spago Nanomedical was provided with MSEK 69 in an oversubscribed rights issue and over-allotment issue, which meant that the company's share capital increased by SEK 9,219,463, divided into 9,219,463 shares. In addition, a further 418,307 shares were issued in a directed share issue to the guarantors in the rights issue who chose to receive remuneration in the form of newly issued shares in the company. In total, the company raised approximately MSEK 64, after transaction costs.
- In order to strengthen the company's long-term financing opportunities, the company changed its trading venue from Spotlight Stock Market to Nasdaq First North Growth Market. The first day of trading on the Nasdaq First North Growth Market was March 26, 2021.
SIGNIFICANT EVENTS AFETR THE QUARTER
No events to report
The first quarter provided a good start to the new year for Spago Nanomedical. We, like everyone else, are of course aware of the effects of the Covid-19 pandemic, which, among other things, means that clinical studies are more difficult to conduct and carry out on time, but we continue to keep pace with our activities and are making progress in our projects.
Progressing clinical development of our contrast agent, SpagoPix, for increased precision in magnetic resonance imaging (MRI) of breast cancer and of the pancreas, is certainly important. The clinical study SPAGOPIX-01 is underway to build a foundation for commercial partnering and future clinical studies. Enrollment continues, but at a slower pace than originally planned due to the pandemic.
SpagoPix has promising potential to become the first tumor-selective contrast agent for MRI and as such meets the present and increasing need for improved diagnostic precision of breast cancer, both in connection with screening of risk groups and prior to surgery. Previous clinical interim results show the enrichment of our nanoparticles in solid tumors in humans, a foundation for our platform technology. This opens in the next stage for the treatment of cancer with our second important project, Tumorad®.
In the Tumorad® project, we have shown, in a preclinical model for aggressive breast cancer, that our material has a positive effect, with both delayed tumor growth and prolonged survival. It is indeed satisfactory that we have now successfully completed the production of materials for regulatory preclinical studies that will form the basis for clinical development. As a general treatment for widespread and aggressive cancer, we believe that Tumorad® has great potential, and we will drive the project forward with full force.
To make this possible – and strengthen the company ahead of upcoming partnership discussions with SpagoPix – we conducted a successful, fully secured rights issue in February. The interest to participate in the rights issue was high, and, including the utilization of an over-allotment issue of approximately MSEK 10, we raised a total of approximately MSEK 69, before issue costs. I am truly happy about the confidence that existing and new owners showed in the company and our projects. Now we can vigorously pursue the Tumorad® project to the clinical phase, and at the same time complete the clinical trial with SpagoPix.
On March 26, we entered the Nasdaq First North Growth Market. We believe that the company is ready to meet a broader interest from international and institutional investors. The change of trading venue provides an opportunity for increased exposure and sends an important signal of our long-term ambitions to become a leading company in the development of nanomedicine. We have an exciting year ahead of us, and I look forward to updating you as the activities continue.
Mats Hansen, CEO
Spago Nanomedical AB