The Board of Directors of Ziccum AB ("Ziccum" or "the Company") today resolved and successfully implemented a private placement of a total of 2,216,815 shares to a limited number of qualified private investors, supported by authorization from Annual General Meeting on June 16. Ziccum is allocated SEK 38.8 million before issue costs. The capital ensures the Company's long-term financing and enables accelerated development of production of temperature-stable vaccines.
The subscription price in the directed share issue has been determined through a so-called accelerated bookbuilding process and amounts to SEK 17.50 per share, corresponding to a discount of 8.10 percent compared to the volume-weighted average price for the share during a period of 10 trading days up to and including June 23, 2020. The Board of Directors assesses that, due to the bookbuilding process, the directed share issue was carried out on market terms.
The Board of Directors has decided to deviate from the shareholders' preferential right in order to provide the Company with capital in a time- and cost-effective way to accelerate the development and commercialization of the Company's unique method for producing dry formulated and temperature-stable vaccines.
Ziccum is developing a method that makes it possible to produce temperature-stable vaccines in a unique and effective way. The company has already announced several industrial collaborations around the technology as well as patent applications for, for example, vaccines based on Adenovirus and viruses from the measles family. In addition, the vaccine market is in a very expansionary phase in the wake of the ongoing pandemic. By increasing the pace of development of production for commercial purposes, the lead time in ongoing and new collaborative projects can be significantly shortened and Ziccum can potentially make greater claims for milestones and royalties in future commercial agreements. The Board is of the opinion that the value of Ziccum's offering to companies that develop and produce vaccines will be strengthened as technical and regulatory risks are minimized.
Ziccum CEO Göran Conradson: "We are developing a unique and potentially groundbreaking production methodology that could fundamentally change the availability of vaccines worldwide. Based on a rapidly growing number of laboratory experiments under our own control and with partners, we can conclude that LaminarPace works very well. We will now invest in being able to offer ready-made production solutions faster, to manage dry formulated vaccines, so shortening the time to market. Above all, we want to accelerate the development of temperature-stable vaccines that can save the lives of millions of children every year."
The directed share issue will have a dilution effect of approximately 23.1 percent of the number of shares and votes in the Company. Through the directed share issue, the number of outstanding shares increases by 2,216,815 shares, from 7,389,385 shares to 9,606,200 shares. The company's share capital increases by approximately SEK 369,469.17 from approximately SEK 1,231,564.17 to approximately SEK 1,601,033.33.
Advisor
Ziccum has engaged Erik Panser Bank and Fredersen Advokatbyrå as financial and legal advisors in connection with the directed share issue.
Important information
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, SOUTH AFRICA OR AUSTRALIA OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION, PUBLICATION OR RELEASE WOULD BE UNLAWFUL OR COUNTER TO CURRENT REGULATIONS. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES IN ZICCUM
The announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Ziccum in any jurisdiction.
This press release does not constitute and does not form part of an offer or solicitation to buy or subscribe for securities in the United States. The securities referred to here may not be sold in the United States without being registered or exempt from registration under the 1933 U.S. Securities Act, as amended, and may not be offered or sold in the United States without being registered or are exempt from registration or are included in a transaction that is not covered by registration under the Securities Act. There is no intention to register any securities referred to here in the United States or to make a public offer regarding the securities in the United States. The information in this press release may not be published, published, copied or distributed, directly or indirectly, in whole or in part, in or to the United States, Canada, Japan, South Africa or Australia or any other jurisdiction where the disclosure, publication or distribution of the information would not be in effect laws and regulations or would require a prospectus, registration or other measures than those required by Swedish law. Measures contrary to this instruction may constitute a violation of applicable securities law.
This press release is not a prospectus within the meaning of Regulation (EU) 2017/1129 (the "Prospectus Regulation") and has not been approved by any regulatory authority in any jurisdiction. Ziccum has not accepted any offer to the public of securities in any Member State of the EEA and no prospectus has been prepared or will be produced in connection with the rights issue. In each EEA Member State, this Communication is only addressed to "qualified investors" in that Member State as defined in the Prospectus Regulation.
In the United Kingdom, this document and other material is distributed and directed in relation to the securities described herein only, and any investment or investment activity to which this document relates is only available to and will be exploited only by "qualified investors" who are (i) persons with professional experience in matters relating to investment which fall within the definition of "investment professionals" in Article 19 (5) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("the Order"); or (ii) persons of high net worth covered by Article 49 (2) (a) – (d) of the Order (all such persons collectively referred to as "relevant persons"). In the UK, any investment or investment to which this Communication refers is available only and will involve only relevant persons. Persons who are not relevant persons should not take action based on this press release and will not act or rely on it.
Forward-looking statements
This press release contains forward-looking statements that reflect Ziccum's intentions, assessments or current expectations and goals for Ziccum's future operations, financial situation, development, liquidity, earnings, prospects, expected growth, strategies and opportunities, and the markets in which Ziccum operates. Forward-looking statements are statements that are not historical facts and can be identified by containing words such as "believe", "expect", "anticipate", "intend", "can", "plan", "estimate", "should" , "Could", "aim" or "maybe" or, in each case, negatives thereof, or similar expressions. The forward-looking statements in this press release are based on various assumptions, many of which in turn are based on additional assumptions. Although Ziccum believes that the expectations reflected in these forward-looking statements are reasonable, it does not provide any assurances that they will occur or prove to be accurate. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or results may differ materially from those presented in the forward-looking statements which are the result of many factors. Such risks, uncertainties, unforeseen events, and other important factors may cause actual events to differ materially from the expectations expressed or implied herein by such forward-looking statements. Ziccum does not guarantee that the assumptions behind the forward-looking statements in this press release are free from errors and assumes no responsibility for the future fulfillment of the statements made in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Readers of this press release should not unduly rely on the forward-looking statements in this press release. The information, opinions and forward-looking statements contained in this press release are provided only on the day of this press release and are subject to change without notice. Neither Ziccum nor anyone else undertakes any obligation to review, update, confirm or publish any revisions to forward-looking statements to reflect events arising or circumstances arising in relation to the contents of this press release.
For more information on Ziccum, please contact:
Göran Conradson: CEO
Email: conradson@ziccum.com
Mob: +46 709 61 55 99
About Ziccum
Ziccum AB (publ) develops new patented formulations of biological drugs where sensitivity to temperature differences, especially during transportation, currently limits medical and so commercial potential. The company’s patented technology, LaminarPace, develops dry powder formulations of drugs and vaccines that currently only exist in liquid form. By doing so Ziccum can increase the availability of drugs and vaccines in existing markets—and open up new ones.
The above is information that Ziccum is required to publish according to the EU Market Abuse Regulations. The information was submitted for publication on June 24, 2020, through the authority of the above contact person.
