Exercising of TO3 warrants in Prostatype Genomics

Exercising period for TO3 warrants prior to US market entry

2024 has the potential to become a transformative and highly value-creating year for Prostatype Genomics. The company expects to reach the US market with its gene test Prostatype® in Q2, submit an application for reimbursement from Medicare in Q3, and obtain Medicare approval in Q4. When this happens, it opens up a market currently valued at around 2 billion SEK (200 million USD) annually, with a total potential to grow to about 6 billion SEK annually. The reimbursement rate from Medicare is currently approx. 3,800 USD per test.

 

Prostatype Genomics expects to maintain a gross margin of over 95% also in the United States, and the company also has a very cost-effective structure for the testing chain that makes it possible to reach breakeven at a group level with as few as 30-50 included American urologists. Compared to existing tests used as a supplementary basis for decision-making for patients with prostate cancer in the US market, Prostatype® is the only one with a focus on three embryonic cancer stem cells, a scientifically proven and highly accurate method that Prostatype Genomics has patented.

 

 

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Folder TO3 warrants (in Swedish)
Subscription exercise TO3 warrants (in Swedish)
Terms for TO3 warrants (in Swedish)
KYC form for subscriptions over 15000 EUR

The company’s potential in the United States

The US market for prognostic gene tests for prostate cancer is currently valued at approximately 2 billion SEK per year, and the market opportunity in the United States for next-generation gene tests such as Prostatype® is estimated by Prostatype Genomics to be worth at least 6 billion SEK per year. The company aims to achieve a significant double-digit market share in the US market during 2025-2026, with a maintained gross margin of over 95% and an attractive industry-relevant operating margin.

Prostatype Genomics is experiencing a great deal of interest from potential commercial partners, especially in the United States, and is continuously evaluating possible collaborations or a sale of the entire company, taking into account the interests of its shareholders and the patient group.

Use of proceeds from exercised TO3 warrants

The proceeds from exercised TO3 warrants will primarily be used for the company’s work to achieve expected future milestones in the US market, while the establishment and sales will continue in focus markets in Europe and Asia. From a patient perspective, it is extremely important to be able to offer Prostatype® to men also in these regions in the long term: here, too, around one in eight men is affected by prostate cancer, and approx. 30-60% of these undergo radical treatment which could have been avoided.

Expected milestones in 2024 – 2025

Q2 2024

  • US lab validation completed, Prostatype® allowed to be sold in the US market
  • Initiated market launch in the United States
  • First US patients using Prostatype®
  • Topline results from the validation study in Spanien

 

Q2-Q3 2024

  • Completed interim data with African American patients from the US study
  • Submitted application to Medicare for reimbursement in the US market

Q4 2024

  • Medicare approval for reimbursement in the US market (current reimbursement level is approx. 3,800 3 800 USD per test)
  • Initiated comprehensive US market launch
  • First sales income based on reimbursement in the US market
  • Data from the US study published in a scientific journal

 

Q1 2025 and thereafter

  • Upscaling of sales in the US market with significant recurring income
  • Continued rising recurring income from focus markets in Europe and Asia

Timeline for the exercise period

2024

05/04
17/04
19/04

  • April 5, 2024 
 First day of the exercise period
  • April 17, 2024  
 Last day of trading for TO3 warrants
  • April 19, 2024  
 Last day of the exercise period

Summary of warrant terms and conditions

Exercise period
April 5–19, 2024

Exercise price
0.04 SEK

Last day of trading for TO3 warrants
17 april 2024

Number of outstanding shares before exercise of warrants
788,286,450 shares

Issue size

If all outstanding TO3 warrants are exercised, the company will receive approx. 10.0 MSEK before issuing costs.

ISIN-code for TO3 warrants

SE0021150794

Do I have TO3 warrants to use?

The company’s warrants of series TO 3 were issued in connection with the company’s rights issue of units that took place in December 2023 – January 2024. If you participated in this rights issue, you thus received warrants that can now be used to subscribe for shares at a price of SEK 0.04 per share.

Press releases and news

 

Press release April 5, 2024: The exercise period for Prostatype Genomic’s warrants of series 3 begins today

Send a question about the exercise period to Prostatype Genomics

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Important information

Due to legal restrictions, the information on this website is only intended for certain recipients. Recipients of this offer in jurisdictions where this offer has been published or distributed should inform themselves of and comply with such restrictions. This offer does not constitute an offer to, or an invitation to, acquire or subscribe for any securities of the Company in any jurisdiction, either from Prostatype Genomics or any other party, where such an offer would be unlawful. No action has been taken and no action will be taken to permit an offer to the public in any jurisdictions other than Sweden. The invitation to interested persons to subscribe for shares in Prostatype Genomics by exercising TO3 warrants will only take place through the prospectus that Prostatype Genomics published on December 11, 2023, including the addendum to the prospectus published on January 3, 2024.   The information on this website may not be disclosed, published or distributed, directly or indirectly, within or to the United States, Belarus, Russia, Australia, Hong Kong, Japan, Canada, New Zealand, Switzerland, Singapore, South Africa or any other jurisdiction where such action would be illegal, subject to legal restrictions or require measures other than those that follow from Swedish law. Actions contrary to this instruction may constitute a violation of applicable securities legislation. No shares or other securities of Prostatype Genomics have been registered, and no shares or other securities will be registered, according to the United States Securities Act of 1933, as amended ("Securities Act"), or the securities legislation of any state or other jurisdiction of the United States and may not be offered, sold or otherwise transferred, directly or indirectly, in or to the United States, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and pursuant to the securities legislation of the relevant state or other jurisdiction in the United States. This communication is distributed to and directed solely to persons in the United Kingdom who are (i) professional investors falling within the scope of the Article 19(5), as amended, of the U.K. Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("the Order") or (ii) high net worth subjects and other persons to whom this notice may lawfully be addressed, who are subject to Article 49(2)(a)-(d) ) in the Order (all such persons are collectively referred to as "Relevant Persons"). Persons who are not Relevant Persons may not act on or rely on the information in this communication. An investment or investment measure referred to in this communication is only possible for Relevant Persons and will only be completed with Relevant Persons. Persons who disseminate this communication must themselves ensure that such dissemination is permitted.

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