Lifecare has completed a private placement of NOK 45 million at a 26% discount to yesterday’s price, equivalent to NOK 2.5 and a theoretical price today of NOK 3.24. This has provided the company with the capital to proceed towards start of production.
Lifecare: Ticker: LIFE | Price: NOK 2,50 | Market Cap.: 295 MNOK | YTD price development: 47%
Lifecare is a Medtech company that develops a smart and revolutionary biosensor that, when inserted in the wrist for example, continuously monitors the glucose (sugar) level in the blood and displays it via e.g. a smart watch. This is badly needed by the more than 500 million patients with diabetes, but at the moment the most common method is to take blood samples several times a day. Lifecare’s sensor can also be used to detect other biomarkers, but currently the company’s focus is diabetes and to launch Sencell Glucose in 2024.
Capital “before” time
It was expected that the capital injection would only be implemented after the final results of the ongoing trial. However, Lifecare has managed to implement the capital route earlier and at a relatively small discount. This can be taken as an indication that the studies continue to yield positive results and that Lifecare can thus continue the process towards final development and market launch of the glucose sensor in 2024.
The market price is below the theoretical price
The share price of Lifecare has today fallen from NOK 3.40 yesterday to the offer price of NOK 2.50. However, the share price “should” only fall to the theoretical price of 3.24, as a maximum of 21 million shares will be issued at the price of NOK 2.50, compared to the barely 100 million shares issued at present.
As the capital injection has been made at a discount, a so-called “repair issue” will be made – a subsequent issue for the remaining shareholders of up to 3 million shares, corresponding to approximately 3% of the currently outstanding shares. The issue will also be at NOK 2.50. However, it will only be carried out if the share price is above NOK 2.50 at that time.
Price development for Lifecare AS vs Kapital Partner Healthcare Index year to date