Lipum’s CEO looks ahead after the rights issue
Lipum’s rights issue was subscribed to 42.6 per cent, of which approximately 35.7 percent was secured through subscription commitments. This means that the company will receive approximately SEK 79.7 million, which will be used to complete the phase I study with SOL-116, manufacturing and other preparations for phase II.
– I would like to extend a big thank you to everyone who participated in the rights issue. Our successful development can continue according to plan, says CEO Ola Sandborgh.
Lipum is developing SOL-116, a biological drug candidate based on a novel mechanism of action linked to the inflammation-driving protein Bile Salt-Stimulated Lipase (BSSL). Currently, a phase I study is ongoing with SOL-116, which has so far demonstrated that the treatment effectively blocks BSSL and that it is safe and well-tolerated.
The rights issue raises SEK 79.7 million
At the end of February, Lipum announced that they plan to carry out a rights issue of up to approximately SEK 187 million to advance SOL-116 into phase II. The subscription period took place during the period April 9-23 2024.
The final subscription outcome shows that the rights issue was subscribed to 42.6 percent. The rights issue was secured to 35,7 per cent by subscriptions undertakings from the company’s major shareholders Flerie Invest, Crafoord Foundation, Adam Dahlberg and Christian von Koenigsegg.
Through the rights issue, the company will receive approximately SEK 79.7 million before deduction of transaction costs.
CEO comments on the capital injection
BioStock talked to CEO Ola Sandborgh regarding the outcome of the rights issue and how the capital injection will be used.
What would you like to say to the shareholders who subscribed in the issue?
– With the support from existing and new shareholders, we are strengthening our cash position and can proceed as planned. We will also be able to prepare and take the initial steps into phase II of our development program for SOL-116. I am very pleased and grateful for the trust that our shareholders have shown us.
How will you allocate the capital?
– Primarily, we will allocate resources to initiate the production of SOL-116 for phase II and to complete the ongoing phase I study. Furthermore, we will allocate funds for preparations ahead of starting the phase II study. Our preclinical work and collaborations with Karolinska Institutet and Örebro University, as well as the project recently supported by Swelife/Vinnova, will of course continue as planned.
Do you need to make any corrections to the development plan or operations after the outcome of the rights issue?
– As always, we adjust and correct cost allocations based on the conditions provided, and this time is no exception. Our assessment has been that we need approximately SEK 100 million until the start of the phase II study, and that is what we adapt to. We are in a very interesting stage of development with exciting new knowledge emerging during the year. In parallel, we are exploring alternative options for additional financing to continue development according to plan.
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.
