Redwood Pharma’s new rights issue oversubscribed
The Board of Directors of Redwood Pharma AB (publ) (“Redwood” or the “Company”) today makes public the outcome of the new preferred Rights Issue for the Company’s shareholders (“New Rights Issue”) which was authorized by the Board on March 15, 2018.
The final outcome reveals that the New Rights Issue was approximately 85 percent subscribed by subscription rights. In addition, shares corresponding to approximately 15 percent have been allocated to persons who have subscribed without support of subscription rights. In total, the New Rights Issue was approximately 126% subscribed without guarantees.
As a confirmation of the allocation of shares subscribed without support of subscription rights, a sales note has been provided to subscribers or brokerages. New shares shall be paid for in cash on the settlement date according to the instructions per the sales note. Subscribers that have submitted their subscriptions through their bank/brokerage will receive notice of their allocation in accordance with the respective brokerage’s routines. The New Rights Issue has generated on Redwood’s behalf approximately 15.8 MSEK before banking fees of nearly 1 MSEK. The New Rights Issue results in an increase in the number of shares in the Company by 2,337,581 shares to a total of 11,687,908 shares. The par value of each share is 0.20 SEK. As a consequence, the Company’s share capital increases by 467,526.20 SEK to 2,337,581.60 SEK.
“That interest has been so great despite the fact that the Rights Issue has not been guaranteed is a message of strength. The capital injection provided by Redwood now allows us to initiate final preparations for our clinical Phase II trial of RP101, our drug against moderate to severe chronic dry eye disease in postmenopausal women. Together with the additional 15 MSEK credit facility we announced today, we are financially well-equipped – having secured the working capital needed until the clinical trial has been completed and evaluated. We are in an important phase of our development and the continued confidence many of our shareholders have shown is rewarding,” says Martin Vidaeus, CEO of Redwood Pharma.
For more information:
Martin Vidaeus, CEO Redwood Pharma AB (publ)
Tel: +46 (0) 70 232 29 29
This information is information that Redwood Pharma AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, 26 April 2018.
About Redwood Pharma
Redwood Pharma develops ophthalmic products for unmet medical needs. The company’s first project is the development of drug candidate RP101 with a known active substance against chronic dry eye in postmenopausal women who have moderate to severe symptoms. With the drug delivery platform IntelliGel® the release of active substances is controlled. Through the use of IntelliGel, Redwood Pharma can also improve dosing of other established drugs. Redwood Pharma’s strength lies in formulation and early clinical development. Revenues will be generated through licensing agreements with pharmaceutical companies that have capabilities to manufacture and sell commercial products worldwide.
Redwood Pharma AB (publ) is listed on AktieTorget, a Swedish Multilateral Trading Facility (Ticker: REDW.ST, ISIN: SE008294789).
For more information visit: www.redwoodpharma.com