24 Oct, 2017

The Rights Issue in Spago Nanomedical AB was oversubscribed

PRESS RELEASE

Lund 24 October 2017

The rights issue in Spago Nanomedical AB (publ) was subscribed to approximately 124%. Spago thereby receives approximately SEK 48.7 million in capital before deduction of issue costs.

“The confidence shown in the company and our projects is very encouraging. We can now fully focus on the first clinical trials with SpagoPix and increase the rate of development in Tumorad”, says Mats Hansen, CEO of Spago Nanomedical.

A total of 7 097 877 units of 5 734 721 offered units were subscribed in the issue. Of these, 5,388,034 units were subscribed with preferential rights for shareholders (equivalent to approximately 94% of the issue). In addition, 1,706,843 units were subscribed without preferential rights (equivalent to approximately 30% of the issue). The rights issue was thus totally subscribed to approximately 124%. The guarantee undertaking has not been claimed.

Allotment of units subscribed without preferential rights has been made in accordance with the allotment principles set out in the terms of issue and as described in the prospectus. Notice of allotment is made by a contract note sent to the subscribers. Allotted units shall be paid in accordance with the instructions on the contract note.

According to the terms of the issue, each unit entitles one share and four warrants of series TO9. Five warrants of series TO9 entitle the holder to subscribe for a new share in the Company during the period from 11 to 22 March 2019 at a subscription price equal to 70% of a weighted average share price in the Company during the period 25 February to 8 March 2019, but at least 8.50 SEK per share.

Through the rights issue, Spago is allocated approximately SEK 48.7 million before issue costs amounting to approximately SEK 3.9 million. In addition, Spago may be allocated an additional SEK 39 million if all warrants of the series TO9 are utilized at the price of SEK 8.50.

Shares and share capital

When the rights issue has been registered with the Swedish Companies Registration Office (Bolagsverket), the total number of shares in Spago will amount to 13,978,135 shares and the share capital will amount to SEK 13,998,135.

Trade in BTU

Trading with BTU´s (paid subscription units) is currently on AktieTorget and ends when the issue has been registered with the Swedish Companies Agency (Bolagsverket). BTU´s are then converted into ordinary shares and warrants.

Advisor

Redeye AB was a financial advisor and Law Firm Cederquist KB was legal advisor to the Company in connection with the rights issue.

For further information, contact Mats Hansen, CEO Spago Nanomedical AB, +46 767 764294, mats.hansen@spagonanomedical.se.

Spago Nanomedical (AktieTorget Stockholm: SPAG) develops nanomaterials for diagnosis and treatment of cancer. The company’s development focuses primarily on the cancer-selective MRI contrast agent SpagoPix and the project Tumorad, for Radionuclide Therapy against Cancer. The company’s business model is based on developing projects from explorative to regulatory preclinical or early clinical phase, then outsourcing or entering into partnerships for further development of projects to market. Spago Nanomedical aims to continuously expand patent protection for the projects and cooperate for this purpose with established and reputable patent agencies. For more information, see www.spagonanomedical.se.

SpagoPix is a contrast agent based on nanoparticles and manganese that can provide improved cancer diagnosis with magnetic resonance imaging (MRI). By offering high precision and very good enhancement of tumors and metastases in MRI images, the possibilities for correct diagnosis of cancer increase. Improved diagnosis with MRI provides an increased chance of effective treatment for the patient.

Tumorad® is a further development of the Company’s nanoparticles for the purpose of delivering radionuclides (radioactive isotopes) for tumor selective radiation treatment of cancer. Access to new therapies is a key to effective treatment of many cancers.

The information in this press release, is information that Spago Nanomedical AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU) No 596/2014. The information was provided by the above contact person for publication on October 24, 2017.

PDF: The Rights Issue in Spago Nanomedical AB was oversubscribed