| Published September 25, 2019

Warrant gives Cyxone cash injection

Since mid-2019, Cyxone's share price has risen by 84 percent, and if measured from the beginning of the year, it has increased by a full 130 percent. The reason is the progress this summer in the company's projects, both for the drug candidate T20K for multiple sclerosis and for its candidate Rabeximod for rheumatoid arthritis.

Cyxone last year made a rights issue, a free subscription option was included in the offer, Retro American Diner Chair TO3. At that time, the company raised approximately SEK 44 million. Now the holders have had the opportunity to exercise the option and the outcome was that 66 percent of the warrants were exercised and Cyxone can thus strengthen its cash by SEK 62,4 million before issue costs, which is a significant addition. In the half-year report 2019, the company reported cash of SEK 23,9 million.
According to the terms of TO3, holders could subscribe for shares at a price of SEK 5,37, which, following the company's positive trend, was a 25 percent discount to the volume-weighted average of the share during the reading period that ran between August 19 and 30. The subscription entails a dilution of 23,7 percent for those who owned shares but did not participate in the subscription.

Clinical progress and insider buying

In August, Cyxone delivered results from its Phase I study with T20K and a favorable safety profile and tolerability in humans could be confirmed. The next step will be to conduct another Phase I study with an oral substance formulation.
Also the candidate Rabeximod against rheumatoid arthritis has progressed during the summer. Cyxone The company is preparing a phase IIb study and applications will be sent to nine European countries in the fall of 2019. BioStock has previously reported that the company has also applied for orphan drug status, which would mean a simplified regulatory process. Read more.
Insiders in the company have purchased shares in Cyxone during August and September, which has also contributed to the interest around the company. Kjell G. Stenberg, Cyxone's CEO, bought just over 17 shares and Chairman of the Board Bengt Junno flagged that he exercised 100 of the current warrants.
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