The biotech company Biosergen is making a unit rights issue of SEK 60M secured by advance drawings and guarantees of approximately SEK 40M. This will provide the company with funding for the Phase II studies and the ongoing Phase I study.

Biosergen: Ticker: BIOSGN | Price: SEK 4,92 | Market Cap.: SEK 140 mio. | YTD share price development: -9%

Biosergen is a biotech company listed on Nasdaq First North Sweden in June 2021. The company is developing an innovative drug to treat fungal infections that kill 1.5 million people annually – in both industrialised and third world countries.

The company’s BSG005 agent has demonstrated significant safety data and potency advantages over existing products developed in the 1950s-70s. BSG005 is in clinical phase I (the first of three phases of development towards the market), from which positive data have emerged. The first of several drugs is expected to be on the market in 2026/27.

Read the investment case of Biosergen here

Theoretical share price of approx. SEK 4.2

The rights issue amounts to SEK 60.2m at a share price of SEK 3.0, corresponding to approximately 40% discount to the share price level of SEK 5 immediately prior to the announcement. Warrants are exercisable during the period 14 – 25 August 2023 at an exercise price at the then prevailing market price, but not above SEK 4.50 and not below par value (SEK 0.025). For every 7 shares held on 13 September 2022, 5 shares (price 3.0 per share) and 3 warrants (free of charge) may be subscribed. The theoretical share price after the issue is therefore approximately SEK 4.2.

70% of the issue is secured by, among other things, SEK 20M from the main shareholder Östersjöstiftelsen, including conversion of debt for SEK 7M, and from issue guarantees.

Subscription in the rights issue will take place during the period 15-29 September 2022 and the result is expected to be announced on 3 October 2022.

If warrants in 2023 are fully exercised, Biosergen will obtain additional funding of SEK 54M.