Curasight carries out the first step of capitalization
In late June, Curasight announced a capital raise package of up to DKK 120 million to finance the ongoing development of its theranostic platform. Investment firm Fenja Capital II is honoring its pre-subscription obligations by subscribing for approximately a third of the units offered through the two unit issues. The total capitalization will fund important inflection points within the coming year.
Copenhagen-based Curasight’s theranostic platform is based on the uPAR receptor, a key biomarker for cancer aggressiveness. Targeting uPAR, the PET-tracer ligand uTRACE and the radioligand therapy uTREAT serve as non-invasive tools to localize, evaluate, and treat multiple types of cancer.
In the Q2 report released in late August, the company revealed it planned to conduct a small study with the treatment part of the platform, uTREAT, to achieve rapid Proof-of-Concept of the candidate. For uTRACE, a phase II study in prostate cancer is ongoing. A first patient enrollment has triggered a DKK 0.5 million milestone payment from partner Curium Inc.
Looking to raise up to DKK 120 million
In the last few months, Curasight’s efforts have focused on ensuring financing for its ongoing development activities. In June, the company unveiled a financing round consisting of two directed share issues of shares – one to the Board and management and one to external investors – as well as a loan facility and a directed issue of units to Fenja Capital II, combined with a preferential rights issue of units to existing shareholders. The units in both the directed issue of units and the rights issue of units consist of two series of warrants – TO2 and TO3. In total, all the elements of the financing package could provide a capital injection of up to DKK 120 million.
Commenting on the structure of the capital raise in an interview with BioStock, Curasight CEO Ulrich Krasilnikoff explained the reasoning behind the setup:
– The directed issues and loan facility provides a bridge financing for the company’s activities in the short term, without our shareholders being diluted too much. However, as we have several important inflection points in the next 12 months, it is important for us to give our shareholders the opportunity to take part in any increased value in the company, and we can do that with the warrant element of the financing package.
Upcoming rights issue of units
Curasight shareholders are invited to subscribe for the remainder of the units from September 16 to September 30. As part of the package, Fenja Capital II signed a pre-subscription agreement with Curasight in June to subscribe for 625,000 units through a directed issue of units. This represents just over a third of the total number of units being offered through the directed issue of units and the combined preferential rights issue of units.
For those not currently holding any Curasight shares, the last day of trading in Curasight’s share, including the right to receive unit rights, is September 11. Hence, those who purchase shares in Curasight on September 11 will receive unit rights. Unit rights can also be purchased via the stock market until September 26. Each share will give the shareholder one unit right, and seventeen unit rights give the shareholder the right to subscribe for one unit. One unit consists of two TO 2 and one TO 3. The subscription price is set at DKK 0.01 per unit.
Heading toward first capital injection in November
Under the structure of the financing, the exercise of the TO2 warrants is set for November/December 2024. If the preferential rights issue of units is fully subscribed, the TO2 warrants can potentially add up to DKK 57.3 million of capital to the company. The exercise price for the warrants will be determined via the volume-weighted average share price 20 days before the start of the exercise period, with a 30 percent discount and within a predetermined range. The range for the TO2 series warrants is set to DKK 11.50 – 15.55 per share.
The exercise of the TO3 warrants is set for June 2025 and, if fully utilized to the highest price, can provide the company with an additional DKK 35.7 million.
Curasight has several development milestones in the coming month, including the recruitment of the last patient in the uTRACE phase II prostate cancer trial and the expected announcement of preliminary results from that study before the end of the year.
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.
