Prolight Diagnostics’ CEO comments on the outcome of the rights issue
Prolight Diagnostics recently announced the outcome of its rights issue, which will finance the continued development of the company’s point-of-care system. The share issue was subscribed to approximately 24 per cent. Approximately 76 per cent of the issue was covered by subscription commitments, bottom underwriting commitments and top-down underwriting commitments. The bottom guarantors were allotted approximately 31 per cent and the top-down guarantors 21 per cent, resulting in approximately 75.2 MSEK in total. BioStock reached out CEO Ulf Bladin to get to know about the allocation of this capital.
Prolight Diagnostics develops a point-of-care analysis system, Psyros, that quickly and accurately measures biomarkers in the blood. The company will initially focus on measuring the cardiac biomarker troponin to detect or rule out a myocardial infarction, but there are also opportunities in other clinical areas for the POC system.
At the end of October, Prolight Diagnostics announced the intention to carry out a rights issue of units of approximately 98.8 MSEK, to complete the development steps required to launch the product.
Outcome in the rights issue
The subscription period in the company’s rights issue ended on December 18, and the outcome was presented on December 20. The issue has been subscribed for a total of approximately 24.1 per cent, of which approximately 22.9 per cent was subscribed through unit rights and approximately 1.2 per cent was subscribed for without unit rights. Approximately 31.3 per cent of the rights issue will be allocated to the bottom guarantors and approximately 21.1 per cent will be allocated to the top-down underwriters.
Potential additional funding from warrants
The rights issue was in total subscribed to approximately 76.1 per cent, which means that the company will receive approximately 75.2 MSEK, before issue costs. Of these, approximately 32.5 MSEK is set-off as part of the purchase price for the acquisition of Psyros Diagnostics.
If all the warrants of series TO6 and series TO7 are exercised in full, the company may be injected with an additional 94.0 MSEK and 75.2 million MSEK respectively.
CEO comments on the strengthened cash position
BioStock contacted Ulf Bladin to find out more about the outcome of the rights issue and how they plan to use the capital injection.
First of all, how do you view the outcome of the rights issue that you recently completed?
– I would like to take this opportunity to thank for the support we have received from both old and new owners, and I am particularly pleased that the rights issue is supported by all members of the board and management. Together, their undertaking corresponds to approximately 13.0 percent of the rights issue.
How long will you be financed with the capital raised from the rights issue?
– With the rights issue and warrants of series TO6 and TO7, the company is financed to be able to carry out all value-creating activities in 2024. The proceeds are crucial to ensure a fast and cost-effective completion of our digital point-of-care analysis system. The fact that the company is financed is also an important prerequisite for effective discussions with potential business partners. Upon full exercise of all warrants of series TO6 and series TO7, the company is expected to be financed all the way to commercial launch in 2026.
How do you plan to manage the capital most effectively?
– The goal is to have a completed commercial system ready by the end of next year for clinical validation in 2025, which is essential for regulatory approval according to IVDR (In-Vitro Diagnostics), followed by a launch in early 2026.
Finally, what will be Prolight Diagnostics’ main focus when you are back after the Christmas break?
– We will continue to develop our groundbreaking point-of-care system into a commercial product. The initial capital will be used for further system development towards clinical validation, including pilot manufacturing lines for test cards and instruments, as well as usability and stability studies.
The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.