Karolinska Development AB — Offer On A Set-Off Share Issue To Convertible Holders To Strengthen The Company’s Equity Position
STOCKHOLM – 6 February 2017. Karolinska Development AB (Nasdaq Stockholm: KDEV) announces that its Board of Directors will present a proposal to shareholders to approve its decision on a new issue of B-shares to the convertible holders offering the convertible holders to “set-off” their convertibles as payment for new B-shares. The decision will be submitted for approval at an Extraordinary General Meeting to be held on 8 March 2017.
Conference call and webcast to be held at 8.00 am CET, 7 February 2017
The Board has concluded that a reduction of the Company’s convertible debt is an essential next step for Karolinska Development. This will lead to a necessary strengthening of the Company’s equity position, thereby reducing the Company’s overall financial risk profile and ensuring that its current cash resources can be used to invest in new portfolio companies. At the end of September 2016, Karolinska Development had SEK 256.3 million in cash and cash equivalents. However, despite these cash resources, the Company needs to strengthen its equity position to continue to comply with the Swedish Companies Act (Aktiebolagslagen).
Bo Jesper Hansen, Chairman of Karolinska Development, said: “The Board’s decision on a directed set-off share issue to the convertible holders with the aim of strengthening the Company’s equity position is a further important step for Karolinska Development to achieve a more robust financial structure.
“In the past 24 months, the Company has finalized its strategic re-organization, strengthened its investment expertise, focused its portfolio, attracted experienced leadership to its portfolio companies, and supported the financing of these companies through syndication with experienced international and domestic life science investors. The Board believes that reducing the Company’s debt position will reduce its overall financial risk profile and ensure that the cash resources can be used to make and support a number of new investments and is therefore in the interest of all stakeholders in Karolinska Development.”
Conference call and webcast
The Company will host a conference call and an online presentation tomorrow, 7 February 2017 at 08:00 am CET. Please dial in at one of the following numbers a few minutes before the start of the conference call:
From Sweden: +46 (0) 8 505 564 74
From the US: +1 855 753 22 30
From the UK: +44 (0) 20 336 453 74
The presentation can be accessed from the following web address: http://edge.media-server.com/m/p/3b6vkkag
Conference call and webcast to be held at 8.00 am CET, 7 February 2017
The Board has concluded that a reduction of the Company’s convertible debt is an essential next step for Karolinska Development. This will lead to a necessary strengthening of the Company’s equity position, thereby reducing the Company’s overall financial risk profile and ensuring that its current cash resources can be used to invest in new portfolio companies. At the end of September 2016, Karolinska Development had SEK 256.3 million in cash and cash equivalents. However, despite these cash resources, the Company needs to strengthen its equity position to continue to comply with the Swedish Companies Act (Aktiebolagslagen).
Bo Jesper Hansen, Chairman of Karolinska Development, said: “The Board’s decision on a directed set-off share issue to the convertible holders with the aim of strengthening the Company’s equity position is a further important step for Karolinska Development to achieve a more robust financial structure.
“In the past 24 months, the Company has finalized its strategic re-organization, strengthened its investment expertise, focused its portfolio, attracted experienced leadership to its portfolio companies, and supported the financing of these companies through syndication with experienced international and domestic life science investors. The Board believes that reducing the Company’s debt position will reduce its overall financial risk profile and ensure that the cash resources can be used to make and support a number of new investments and is therefore in the interest of all stakeholders in Karolinska Development.”
Conference call and webcast
The Company will host a conference call and an online presentation tomorrow, 7 February 2017 at 08:00 am CET. Please dial in at one of the following numbers a few minutes before the start of the conference call:
From Sweden: +46 (0) 8 505 564 74
From the US: +1 855 753 22 30
From the UK: +44 (0) 20 336 453 74
The presentation can be accessed from the following web address: http://edge.media-server.com/m/p/3b6vkkag