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TO 4 warrants in Prostatype Genomics | 2024
Close to crucial milestone ahead of US sales efforts
In late September, Prostatype Genomics submitted an application to include the Prostatype® genetic test in Medicare’s reimbursement system (current reimbursement level for the product category is approx. 3,700 USD per test). The goal is still to achieve approval in Q4 2024.
Following approval, a focused sales effort can be started in an addressable market that the Company estimates to be worth approx. 6 billion SEK per year. This will initiate a new chapter in the Company’s history: full focus on Prostatype® sales in the world’s largest single market with cost reimbursement from the country’s largest healthcare system.
The proceeds from the subscription of shares with TO 4 warrants will primarily be used to achieve value-driving progress in the US market.
The subscription period ends in:
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Use of issue proceeds
During the exercise period, holders of warrants of series TO 4 have the right to subscribe for new shares in Prostatype Genomics. At full utilization, the Company will receive approx. 9.9 MSEK before issue costs, which are estimated to amount to approx. 0.9 MSEK. With the issue proceeds, the Company intends to finance the following activities:
- Completed US study with Prostatype®
- Initiated recruitment of in-house sales force and initiated sales efforts in the US market given Medicare approval for reimbursement
- Completed health economics report for Prostatype® in Spain
“With several milestones achieved in the US in 2024, and likely the most value-creating period in the Company’s history around the corner, we see excellent opportunities to create significant shareholder value in 2025 and beyond.”
US progress so far in 2024
Prostatype Genomics has achieved several regulatory and commercial milestones in the United States in 2024, which means that the Company is ready to begin focused sales efforts in the US market when Medicare approval is achieved:
- Necessary licenses, approvals and validation processes obtained/conducted so that Prostatype® is already available for sale in the US market
- Agreement signed with our laboratory partner ResearchDX so that the number of analyses of Prostatype® tests can be scaled up significantly in a cost-effective manner
- Leading urologists such as Professor E. David Crawford started to use Prostatype® for patients and delivers valuable feedback
- The test report for Prostatype® was adapted for the endpoints used by American urologists
- US validation study with Prostatype® in collaboration with Veteran Affairs, which offers healthcare to American soldiers, with a patient group that corresponds to the broad ethnicity found in the United States, is underway with laboratory analysis completed for all patients in Q4 2024.
Expected milestones in Q4 2024 – 2025
Q4 2024
- Completed laboratory analysis of all patients in the US study with Prostatype®
- Medicare approval for reimbursement in the US market
Q1 2025
- Completed data analysis and scientific reporting for the US study with Prostatype®
- Initiated recruitment process of experienced sales reps./key account managers in the US market
Q2 2025
- Initiated sales/testing of US patients with reimbursement support
- Presentation of preliminary results from the US study with Prostatype®
- Focused sales efforts in the US market in selected states and nationwide towards urology groups
- Commercial progress in the US market (milestones for number of tests sold and important customer agreements) will be communicated from Q2 2025 and onwards
- Completed health economics report for Prostatype® in Spain
Q3 2025 och framåt
- Revenue generation and thus demonstrated scalability of the US business
- Expansion of the US sales force
Timeline for TO 4 warrants
2024
Summary of TO 4 warrants exercise terms
Subscription period
November 25 – December 9, 2024
Subscription price
5.96 SEK per share
Issue size
9.9 MSEK
Exercise terms
One thousand (1000) TO 4 grants the warrant holder the right to subscribe for one (1) new share in Prostatype Genomics at a price of 5.96 SEK per share.
Issue size
There are 1,663,016,092 issued warrants of series TO 4. At full subscription of TO 4, Prostatype receives approx. SEK 9.9 million before issue costs.
Shares and share capital
Upon full utilization of TO 4, the number of shares in Prostatype will increase by 1,663,016 shares to a total of 6,811,367 shares and the share capital will increase by SEK 166,301,60 to SEK 681,136.70. The dilution at full utilization amounts to approximately 24.4 percent of the capital and votes.
Subscription price
The subscription price when exercising TO 4 warrants is set at 5.96 SEK per share.
Trading in warrants
It is possible to trade in TO 4 warrants up until December 5, 2024.
Complete terms
Complete terms and instructions for warrants of series TO 4 are available on the Company’s website (www.prostatypegenomics.com).
Subscription period
It is possible to subscribe for shares in Prostatype Genomics with TO 4 warrants during the period 25 November – 9 December, 2024.
Short name and ISIN code
TO 4 are traded at First North Stockholm under short name “PROGEN TO4” and with ISIN SE0022574554.
Press releases and news
Analysis update December 5, 2024: Prostatype Genomics: Crucial decision ahead (in Swedish)
Filmed presentations
See a filmed Q&A with CEO Fredrik Rickman at a Redeye event on December 3, 2024 by clicking on the film.
Filmed presentation with the Company’s Chief Medical Officer Professor Gerald Andriole
Please note that a free Vimeo account or login with an Gmail, Facebook or Apple account is required to view the presentation.
Send a question about the Rights Issue to Prostatype Genomics
IMPORTANT INFORMATION
This advertisement constitutes marketing and is not a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council. The invitation to subscribe for securities in Prostatype Genomics AB (“Prostatype Genomics” or the “Company”) takes place only through the prospectus published in August 2024, which is available on Prostatype Genomics website www.prostatypegenomics.com. Investors are advised to read the prospectus in its entirety before making an investment decision. This advertisement may not be distributed, published or made public in or to the United States, Australia, Japan, Canada, New Zealand, South Africa, United Kingdom, Hong Kong, Switzerland or Singapore. The advertisement must not be sent to persons in these countries or any other jurisdiction to which it is prohibited to deliver subscription rights, BTA or new shares, except in accordance with applicable law and provided that it does not require any additional prospectus, registration or other actions beyond those that follow of Swedish law. Except as expressly stated otherwise in the prospectus, subscription rights, BTA or new shares may not be offered, sold, transferred or delivered, directly or indirectly, in or to any of these countries.
This advertisement is produced by the IR communications agency Honeybadger (owner of the domain ii.se) on behalf of Prostatype Genomics. Prostatype Genomics is thus the sender of the information in the advertisement and responsible for its correctness.