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Preferential rights issue in Prostatype Genomics

Rights issue for commercialization, Medicare approval and completed US study

The board of Prostatype Genomics has decided to carry out a preferential rights issue of up to 49.5 MSEK for the financing of continued commercialization in the company’s prioritised markets (the United States and selected EMEA markets), including the process for Medicare approval in the United States and the ongoing American validation study.

 

The guaranteed net proceeds are expected to be sufficient to apply for Medicare reimbursement approval for the genetic test Prostatype®, complete an ongoing American validation study and receive Medicare approval in the United States, all of these before the end of 2024.

The company considers receiving Medicare approval to be a crucial milestone to be able to achieve large-scale usage of Prostatype® in the United States, the world’s largest market for genetic tests in prostate cancer with annual sales of approx. 2 billion SEK. The reason is that the cost for each test would go from patient-financed to be covered by Medicare (currently approx. 3,700 USD per test).

 

 

Usage of the proceeds from the preferential rights issue

Prostatype Genomics is guaranteed to initially receive a minimum of approx. 35.7 MSEK in gross proceeds from the preferential rights issue and will receive a maximum of 49.5 MSEK.  The net proceeds (after issue costs) of at least 27.5 MSEK will be allocated to  the following activities:

  • Repayment of bridge loan and interest (approx. 23 percent of the minimum net proceeds)
  • Completed process to receive Medicare reimbursement approval and completion of the validation study in the United States (approx. 50 percent of the minimum net proceeds)
  • Ongoing commercialization activities in the United States and Europe, and strengthening of the company’s overall working capital and ongoing operation activities (remaining part of the net proceeds)

The net proceeds from the exercise of included TO4 warrant, with exercise period November 25 – December 9, 2024, will also be used for commercialization activities in the United States and Europe, and strengthening of the company’s overall working capital and ongoing operation activities.

Prostatype Genomics is progressing as planned, with Q3 2024 marking the completion of the validation phase. This sets the stage for our biggest milestone in Q4: Medicare reimbursement approval.

Fredrik Rickman

CEO, Prostatype Genomics.

LSIF is excited to be a lead guarantor in this offering. Considering the expected approval for reimbursement in the US in the near term, the next 6 – 12 months can radically change the prospects for Prostatype Genomics, and we look forward to supporting the company on this journey.

Jan Poulsen

CEO, Life Science Invest Fund 1 (LSIF)

Commercial progress so far in 2024

Prostatype Genomics has achieved significant progress in its selected markets so far in 2024, including:

Commercial breakthrough in the United States

  • Commercial availability of the genetic test Prostatype® in the United States, and initiated clinical use on patients, after achieving several regulatory milestones: laboratory agreement with ResearchDx, acquisition of a CLIA certificate and laboratory accreditation by CAP
  • By holding its own CLIA certificate, the company can receive reimbursement payments directly from Medicare and commercial payers, which significantly increases the company’s potential sales income and profit margin in the United States
  • Strategic collaboration and clinical use on patients with Professor E. David Crawford, MD, an internationally renowned expert within prostate cancer
  • Continuous progress in the ongoing large American validation study with 1,200 patients and broad ethnicity coverage

Strong interim results from the long-term follow-up study in Uppsala

  • The interim results from 180 of approx. 500 patients in total in the ongoing study at Akademiska University Hospital in Uppsala, Sweden showed excellent accuracy for Prostatype® even after 20 years of follow-up time after diagnosis


Positive final results from multicentre study with Prostatype® in Spain

  • The retrospective study at seven hospitals, coordinated by the Spanish National Urology Association, showed that the treatment plan could have been modified for 39% of the patients if Prostatype® had been used as a decision basis
  • Agreements signed with private healthcare providers in Spain, and ongoing negotiations with more private healthcare providers as well as university hospitals.

Timeline for the preferential rights issue

2024

August 9:

Publication of EU-growth prospectus 

August 15:

Record date

August 19 until registration of the rights issue:

Trading in BTU

August 13:

Last trading day in the share including the right to receive unit rights

August 19 – 28:

Trading in unit rights

September 3:

Preliminary outcome of the rights issue

August 14:

First trading day in the share without the right to receive unit rights

August 19 – September 2:

Subscription period

September 4:

Final outcome of the rights Issue

Summary of the preferential rights issue

Subscription period
August 19 – September 2

Subscription price
0.01 SEK per share

Issue size
49.5 MSEK

Guaranteed up to
72.1 %

Preferential rights

Existing shareholders will receive one (1) unit right for each share held on the record date August 15, 2024. One (1) unit right entitles the holder to subscribe for one (1) unit in the company. Each unit consists of five (5) new shares and two (2) warrants of series TO 4.

Issue size

The rights issue comprises a maximum of 990,811,186 Units, corresponding to a maximum of 4,954,055,930 shares and 1,981,622,372 warrants of series TO 4. Upon full subscription in the rights issue, Prostatype Genomics will initially receive approximately 49.5 MSEK before deduction of issue costs.

Included warrants

One (1) warrant of series TO 4 entitles the holder to subscribe for one (1) new share in the company during the period November 25, 2024 to and including December 9, 2024 at an exercise price of 30% discount of the 10-day volume-weighted average price prior to the first day of the exercise period.

Record date

The last day of trading in the Prostatype Genomics share including the right to receive unit rights in the rights issue is August 13, 2024. The shares are traded excluding the right to receive unit rights in the rights issue from August 14, 2024.

Subscription price

The subscription price in the preferential rights issue is 0.05 SEK per unit, corresponding to 0.01 SEK per share. Warrants of series TO4 are issued free of charge.

Subscription period

The subscription period in the rights issue runs from August 19, 2024 to and including September 2, 2024.

Trading in warrants

Warrants of series TO 4 are expected to be admitted to trading on Nasdaq First North Growth Market in close connection with the registration of the rights issue with the Swedish Companies Registration Office and the conversion of BTU to ordinary shares and warrants.

Pre-subscriptions and guarantee commitments

The rights issue is covered by pre-subscriptions and guarantee commitments up to approx. 72.1 percent. The guarantee commitments consist partly of a so-called top guarantee commitments and partly of a so-called bottom guarantee commitments.

Conversion of shareholder loan

Shareholder loan of a total of 3.2 MSEK will be converted within the issue, or in a separate directed issue on identical terms as the rights issue.

Bridge loan

In order to secure the company’s liquidity needs until the rights issue has been completed, the company has obtained a bridge loan of 6.5 MSEK, where Exelity AB accounts for 4.2 MSEK and Buntel AB accounts for 2.3 MSEK.

Complete terms and conditions

The complete terms and conditions for the rights issue, including additional information about the company, is made available in an EU growth prospectus that was published on August 9, 2024.

Filmed company presentation

Send a question about the Rights Issue to Prostatype Genomics

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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.

 

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