STOCKHOLM, Sweden, Sept. 8, 2005 (PRIMEZONE) -- On September 7, 2005 the board of Biotage AB decided to increase the company's share capital by means of a new issue of 10 million shares. The shares are subscribed by Carnegie Investment Bank for resale to a limited number of institutional investors in Sweden and abroad. The decision was based on the authorization to the board by the extraordinary shareholders' meeting held on August 30, 2005.
By the new issue, the share capital is increased by SEK 10 million to SEK 80,442,108. The issue price amounts to SEK 9.70 per share, corresponding to approximately 95 percent of the average volume weighted price paid for the Biotage share on September 7, 2005, and approximately 98 percent of the average volume weighted price paid for the share during the ten latest trading days (August 25 -- September 7 2005).
In order to efficiently execute the issue, the Company's three largest shareholders, HealthCap, Investor Growth Capital and Catella Healthcare, will lend shares in connection with the issue.
The new shares correspond to approximately 12 percent of the capital and votes of Biotage following the issue. After deduction of costs, the new share issue brings the company new capital amounting to approximately SEK 94 million.
The motive for the issue and the deviation from the shareholders' preemption rights is to promptly and efficiently refinance part of the debt financing, amouting to SEK 140 million, regarding the acquisition of Argonaut's business.
In order to refinance remaining part of the above-metioned debt financing, the board intends to resolve upon a rights issue, based on the above-mentioned authorization from the extraordinary shareholders' meeting. The terms of the rights issue is intended to be communicated within short.
Biotage AB (publ) The Board of Directors
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. The customers include the world's top 30 pharma companies, the world's top 20 biotech companies, and leading academic institutes. The company is headquartered in Uppsala and has offices in the U.S., Japan, U.K. and several other European countries. Biotage has approx. 340 employees and had pro-forma sales of approx. 500 MSEK in 2004. 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.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://wpy.waymaker.net/client/waymaker1/WOLReleaseFile.aspx?id=128514&fn=wkr0001.pdf