Arcede Pharma heading towards liquidation
This spring, Arcede Pharma has worked hard to find a financing solution for the continued work on RCD405, but has not succeeded. Consequently the board of directors is now proposing a voluntary liquidation of the company and intends to propose a delisting of the company’s shares from Spotlight Stock Market.
Since the spin-off from Respiratorius, Arcede Pharma has focused on the development of its drug candidate RCD405, which aims to treat chronic obstructive pulmonary disease (COPD). The candidate differs from existing treatments by a combined mechanism of action, which both dilates the airways and reduces inflammation. The aim has been to be able to offer a more effective treatment for COPD patients, with a more favorable side effect profile compared to today’s treatment regimens.
RCD405 has undergone extensive preclinical studies with promising results and the next step has been to initiate clinical studies. However, taking that step requires financial strength currently missing in the company, as cash at the end of the first quarter amounted to just over SEK 5.5 million.
Worked hard to find funding
In the latest quarterly report, acting CEO Erik Magnusson stated that the company was actively working to find financial solutions, but that it had not been able to find any. According to the company, there was insufficient interest from current and external investors to continue the development. The board of directors has therefore made the assessment that there is no other alternative than to put the company into voluntary liquidation.
– It is a challenging situation for the company and its shareholders, but this is the only reasonable way to avoid bankruptcy, says chairman of the board Ingemar Kihlström.
Resolutions at the extraordinary general meeting
The proposal is conditional upon a resolution at an extraordinary general meeting, which will be held in the second half of July 2024, where shareholders will have the opportunity to vote on the board’s proposal. In connection with this, the board also proposes a delisting of the company’s shares from Spotlight Stock Market. The preliminary assessment is that any distribution to shareholders in connection with the liquidation will amount to a maximum of SEK 1 million.
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