March 7, 2011 -- In 2010 Genovis demonstrated that the products in the protein engineering portfolio have commercial value and the number of customers is steadily increasing. Development of more products and new applications from the company's pipeline will be introduced in 2011.
The results from Genovis development of multimodal nanoparticles as contrast medium have proved to be highly encouraging, with a launch in preclinical applications planned for 2011. In addition, Genovis has acquired the rights to a technology in which upconverting nanoparticles are used as contrast agents within optical imaging; this method will also be launched within one year. Development in the Sentinel node project, a research project in collaboration with Lund University that is partly financed through the Swedish Research Council, is progressing according to plan and has been strengthened with both internal resources and expanded cooperation with Lund Bioimaging Center. In light of developments in 2010, Genovis is optimistic about initiating sales of nanoparticles as a contrast medium in bioimaging.
To nurture this development the Company has adopted a plan for 2011 and 2012 that will result in increased growth in sales of products from the protein engineering portfolio and of brand new products from the nano portfolio. It is important for the Company to be able to carry out the plan to achieve profitable sales, and in order to fully support the plan the Company needs additional capital.
The Company currently lacks the capital to pursue its business plan.The capital provided by the forthcoming new share issue will be used for the Company’s business operation in 2011 and 2012, and will primarily be invested to launch several products from the protein portfolio and to launch nanoparticles as a contrast medium in biomedical imaging. Moreover, the company will invest in infrastructure for production and analysis of so-called upconverting nanoparticles. In addition, the Company will secure its internal R&D operations so that the company can strengthen its IP portfolio relating to the design and production of nanostructures as multimodal contrast agents within preclinical research, diagnostics, and as medical devices in clinical practice. The share issue proceeds will also strengthen the Company over the next two years by giving the operation the durability and power to pursue the plan.
With this in mind the board of directors decided to hold an extraordinary general meeting on March 28, 2011 and recommend a new share issue with preferential rights for existing shareholders.
Proposal to resolve on new share issue
The board proposes that the EGM resolve on a new share issue giving preferential rights to existing shareholders so that four (4) existing share entitle to subscription of three (3) new shares at a subscription price of SEK 0.65. As a result of this resolution, share capital could increase by a maximum of SEK 12,336,562.8 through the issuance of 30,841,407 shares. Following the completed share issue, share capital will amount to a maximum of SEK 28,785,313.6 and the number of shares to 71,963,284. The Company will raise about SEK 20 million before issue expenses. The issue will have a dilutive effect of 43%.
Furthermore, the Board proposes an oversubscription option of 13,000,000 shares, which the Board of Directors will decide on in the event that the offering is oversubscribed. If the oversubscription option is exercised the share capital will amount to a maximum of SEK 33,985,313.6 and the number of shares to 84,963,284. The Company will raise approximately SEK 8 million.
Timetable for new issue
March 28, 2011 EGM addresses proposal to resolve on new issue.
April 4, 2011 Last trading day for Genovis share, including subscription rights for new issue.
April 7, 2011 Record date for participation in the new issue; shareholders registered in Genovis’ share register on this day receive subscription rights for participation in the new issue.
April 13 – May 6, 2011 Subscription period. Subscription with preferential rights through cash payment during the subscription period. Shareholders may report their intention to subscribe throughout the subscription period.
For more information, please contact: Sarah Fredriksson, CEO, Genovis AB Tel: 46 46 10 12 35
Genovis develops and designs smart nanoparticles for preclinical imaging and diagnostics and also develops and sells tools for modification of antibodies.Genovis shares are listed on Nasdaq OMX First North and Thenberg & Kinde Fondkommission (+46 (0)31 745 50 00) is the Company’s certified adviser.