The Board of Directors of Active Biotech has, pursuant to the authorization
given by the 2009 annual general meeting, resolved today to issue a total of
1,418,000 new shares in Active Biotech.
The issue is completed by means of a directed share issue placed with funds
managed by Sectoral Asset Management Inc., a global investment manager in the
healthcare sector. The shares are issued at a subscription price of SEK 105 per
share, which means that the issue proceeds amounts to approximately SEK 149
million before issue expenses. The subscription price was determined on the
basis of the current market price of the Active Biotech share on NASDAQ OMX
Stockholm and corresponds to the average closing price of the Active Biotech
shares during the preceding thirty trading days.
The additional funds will be used to strengthen Active Biotech's capital base
and enable the continued development and value-growth of the project portfolio,
of which TASQ, 57-57, ANYARA and ISI are managed and financed on a proprietary
basis. The development of laquinimod and RhuDex(TM) are managed and financed by
partners. The new issue also strengthens Active Biotech's position with
potential partners and hence gives the company increased flexibility as to the
timing of these partnerships.
The Board considers it being beneficial for the company and its shareholders to
broaden the shareholder base, improve the opportunities of increased liquidity
in the share and take advantage of the opportunity to raise capital from a
strong, competent investor on attractive terms for the company. The Board
believes that the share issue, which in light of the aforesaid is made with
deviation from the shareholders' pre-emptive rights, will promote the creation
of value for all shareholders of the company.
Tomas Leanderson, CEO of Active Biotech, says: "2009 was a very good year for
Active Biotech. We fully enrolled three large clinical studies, obtained
"proof-of-concept" for TASQ, the project for prostate cancer treatment, and
published a first target molecule for the quinolines (the ISI project). The
laquinimod project for the treatment of multiple sclerosis received "Fast Track"
status and the phase III program, managed by our partner Teva, is proceeding
according to plan. In addition Teva has an ongoing clinical phase II development
program with laquinimod for the treatment of Crohn's disease, and will initiate
clinical phase II development with laquinimod for the treatment of lupus
nephritis and lupus arthritis (www.clinicaltrials.gov
<http://www.clinicaltrials.gov/>). I am very pleased to note the validation of
Active Biotech's maturing pipeline by a specialized investor such as Sectoral
Asset Management."
Through the issue, the number of shares in Active Biotech increases by
1,418,000 from 64,175,530 to 65,593,530 and the share capital increases by SEK
5,344,927.88 from SEK 241,899,562.60 to SEK 247,244,490.48. MGA Holding AB has
undertaken to temporarily lend the number of shares required to facilitate
prompt delivery to the subscribers.
Lund, April 1, 2010
Active Biotech AB (publ)
For further information, please contact:
Tomas Leanderson, President and CEO
Tel: +46 (0)46-19 20 95
E-mail: tomas.leanderson@activebiotech.com
<mailto:tomas.leanderson@activebiotech.com>
Hans Kolam, CFO
Tel: +46 (0)46 19 20 44
E-mail: hans.kolam@activebiotech.com <mailto:hans.kolam@activebiotech.com>
Göran Forsberg, VP Investor Relations & Business Development
Tel: +46 (0)46-19 11 54
E-mail: goran.forsberg@activebiotech.com
<mailto:goran.forsberg@activebiotech.com>
About Active Biotech
Active Biotech AB (NASDAQ OMX NORDIC: ACTI) is a biotechnology company with
focus on autoimmune/inflammatory diseases and cancer. Projects in pivotal phase
are laquinimod, an orally administered small molecule with unique
immunomodulatory properties for the treatment of multiple sclerosis, as well as
ANYARA for use in cancer targeted therapy, primarily of renal cancer. Further
key projects in clinical development comprise the three orally administered
compounds TASQ for prostate cancer, 57-57 for SLE and RhuDex(TM) for RA. Please
visit www.activebiotech.com <http://www.activebiotech.com> for more information.
Active Biotech is required under the Securities Markets Act to make the
information in this press release public. The information was submitted for
publication at 3:00 pm CET on April 1, 2010.
[HUG#1400337]
