Biotage issues 5.7 million new shares to Catella Healthcare


STOCKHOLM, Sweden, Dec. 15, 2004 (PRIMEZONE) -- Biotage:

On 14 December 2004, the board of Biotage AB resolved to increase the company's share capital by means of a new issue of 5.7 million shares to Catella Healthcare AB. The resolution was based on the authorization to the board by the extra ordinary general meeting on 20 July 2004.

By the new issue, the share capital is increased by SEK 5.7 million to SEK 64,042,108 through an issue of 5.7 million shares. The issue price is SEK 7.90 per share. The issue price corresponds to the latest price paid for the Biotage share on 14 December 2004, and exceeds the average price paid for the share during the ten latest trading days by more than 3 per cent.

With deviation from the shareholders' preemption rights, the entire new issue is subscribed by Catella Healthcare. The acquisition corresponds to 8.9 per cent of the capital and votes of Biotage following the issue. The payment for the shares amounts to approximately a total of SEK 45 million.

The reason for the issue is mainly to improve the company's financial position in order to take advantage of business possibilities and by that creating increased profitability and growth.

The major shareholders of Biotage have informed the company that they recommend that Annika Espander, CEO of Catella Healthcare, will be offered a seat on the board of Biotage at the next annual general meeting.

"We are impressed by the restructuring process that has been conducted under Jeff Bork's management. It is our evaluation that the company has highly favorable prospects for establishing itself as a leading player within its core areas, medicinal chemistry and genetic analysis," says Annika Espander.

"We view Catella Healthcare's investment in Biotage as a sign of strength. An additional long-term owner strengthens our ownership base, while Annika Espander's future board membership would suggest an active ownership," says Jeff Bork, President and CEO of Biotage.

Biotage has previously announced a program of measures intended to reduce the Group's costs from SEK 600 million to less than SEK 300 million during 2004. It also announced that a positive cash flow would be achieved during the fourth quarter of the year.

``The cost-reduction target was achieved during the first quarter of 2004 and we retain a realistic view that we will achieve positive cash flow during the fourth quarter of the year," says Jeff Bork.

Facts for editors:

Catella

Catella is a financial group focusing on capital management, corporate finance and its own investments. By contributing both knowledge and capital, Catella is able to generate unique conditions for its customers. During 2003, Catella acted as financial advisor in transactions with a combined transaction value of SEK 50 billion. Slightly less than SEK 12 billion is managed on behalf of customers. In addition, Catella is the full or partial owner of some 50 companies with a total of approximately 2,500 employees. Catella was founded in 1987 and currently has operations in eight European countries. For further information, visit our website at www.catella.se.

About Biotage

Biotage is a global company active in life science research with strong technologies, a broad range of operations and a long-term view of the market. The company offers solutions, knowledge and experience in the areas of genetic analysis and medicinal chemistry. Customers include the world's top 30 pharmaceutical companies, 20 largest biotech companies and leading academic institutes. The company is headquartered in Uppsala and has offices in the US, Japan and several European countries. Biotage has approx. 235 employees and had pro forma sales of 362 MSEK in 2003. Biotage is listed on the Stockholm stock exchange. Website: www.biotage.com

Certain statements in this press release are forward-looking. These may be identified by the use of forward- looking words or phrases such as "believe," "expect," "intend," and "should," among others. These forward-looking statements are based on Biotage's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Biotage notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the microwave synthesis and flash purification in the drug discovery market, DNA sequencing and genomics market, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for Biotage's products (including seasonal fluctuations), difficulties in successfully adapting the Company's products to integrated solutions and producing such products, and the Company's ability to identify and develop new products and to differentiate its products from competitors.

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Biotage issues new shares 041215



            

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