Copenhagen-based Curasight develops uTREAT and uTRACE as new next-generation peptide-based radioligands for the diagnosis and treatment of various types of cancer. The company already has a partnership with the British pharmaceutical company Curium in prostate cancer and recently announced that it is accelerating its therapeutic strategy to develop both its treatment platform uTREAT and its diagnostic platform uTRACE in parallel. As part of this effort, Curasight aims to conduct a Phase I/IIa study in five different cancers: glioblastoma, neuroendocrine tumors, head and neck cancer, non-small cell lung cancer and pancreatic cancer.
Decided not to proceed with the rights issue
The rights issue announced last month was designed to help finance Curasight's accelerated therapeutic strategy. The rights issue was priced at DKK 18 per share at the time of announcement, but during the subscription period the share price traded below this level. This, together with the current challenging market conditions, has led the board of directors to now decide not to proceed with the rights issue.
At the same time, the company announces that it stands by its updated strategy and is currently evaluating alternative financing options to drive it forward. With its current financial position, Curasight's development is funded until the second half of 2024.
"We believe that the right way to build value in Curasight is to accelerate our therapeutic strategy so that we develop our groundbreaking radiopharmaceutical platforms uTRACE and uTREAT, in parallel. We are disappointed that participation in the rights issue was not optimal, and we are currently evaluating alternative financing options to ensure that the company has a robust balance sheet to both continue our development activities and ensure that we are in a strong position when negotiating potential partnerships," it writes. Per Falholt, Chairman of the Board of Curasight, in a press release.
Consequences of the cancelled issue
Following the announcement not to complete the rights issue, Curasight's share price fell by approximately 29 percent on Tuesday. Spotlight Stock Market has stopped trading in Curasight BTA. Investors who subscribed to the rights issue will have their subscription money refunded. In the case of the temporary shares, the subscription amounts will accrue to the last registered owner of the temporary share. Buyers of subscription rights will only receive a subscription amount back if they have submitted a subscription commitment.