Through a private placement at market price, FluoGuide raises SEK 60M to initiate planned Phase II trials and trigger the first price trigger.

Positive price impact

FluoGuide has completed an issue of 1,411,765 shares at a price of SEK 42.5, corresponding to a discount of 7.5% compared to yesterday’s share price of SEK 45.95. With 12,208,384 existing shares, the theoretical share price after the issue is SEK 45.59, corresponding to a price decrease of 0.78%. The benefits of now being able to initiate the potentially highly value-generating Phase II trials are therefore far greater than the marginal dilution of the existing shareholders, and could therefore have a large positive price effect.

DKK 50 million for continued development

The capital increase provides FluoGuide with gross proceeds of DKK 40.2M. In addition, FluoGuide has increased its bank credit from DKK 20M to DKK 25M, of which DKK 15M has been drawn. FluoGuide’s total capital resources have thus increased by gross DKK 45M to DKK 50M (in addition to existing capital and less costs for the private placement).

FluoGuide thus has funding for the two planned Phase II trials with the drug FG001 in brain cancer and head and neck cancer. Initiation of these trials are also potential price triggers.

Price triggers

The following price triggers are awaiting for FluoGuide:

• Start Phase II trials with FG001 in head and neck cancer and aggressive brain cancer (2024/early 2025)
• Sign new partner agreements with device manufacturers (2024 – )
• Pipeline expansion in other cancer indications (2025 – )
• Positive results of phase II studies (2025/2026)

The bottom has been hit for the share price

FluoGuide’s share price has been negatively affected by the general market conditions, which have had a particularly negative impact on biotech companies. Recently, the risk of a capital increase with high dilution of existing shareholders has probably also had a negative impact on the share price. The completed private placement will therefore in itself be able to lift the share price, while the initiation of the phase II studies and especially the first results from these could have a significant effect on the share price.

Although the private placement will probably not be large enough to fully finance FluoGuide’s operations until the final results of the trials, it shows that there is interest in FluoGuide from professional investors, which is a significant strengthening of the investment case. There are therefore several factors in favour of the share price bottoming out at the existing price level of SEK 45.

Price development for FluoGuide vs. KPHC-index the past 12 months