Chordate Medical’s CEO on the rights issue outcome and way forward
Chordate Medical has now announced the outcome of the rights issue that was completed on February 17. The issue was subscribed to approximately 79.9 per cent in total, of which around 18.4 per cent by guarantee commitments. This means that the company will receive approximately SEK 17.7 million before deduction of issue costs.
Between February 3 and 17, Chordate Medical conducted a rights issue of units, where each unit consisted of one common share and one preference share. The subscription price per unit was 12 SEK.
The primary objective of the capital raise was to advance the exit process by completing clinical studies and strengthening the market positioning of the company’s medtech treatment, Ozilia, in strategically selected key markets.
Currently, Ozilia is being introduced in selected markets in Europe and the Middle East for the treatment of chronic migraine and rhinitis. Clinical studies have shown that Ozilia is an effective and safe option for preventive migraine treatment, with documented ability to reduce the number of headache days per month.
CEO interview: capital injection and the road ahead
Through the rights issue, the company will receive approximately SEK 17.7 million before deduction of issue costs. BioStock reached out to CEO Anders Weilandt to gain a better understanding of how the capital will be utilized and what strategic initiatives are planned moving forward.
How will you use the capital injection in the most cost-effective way possible?
– We are now fully focused on supporting the exit process, which means we are not prioritising costs that have a long-term effect horizon. Any costs that do not have a direct impact on the potential for a successful transaction will have to wait.
What concrete initiatives are you planning to increase the chances of an exit?
– Primarily, we aim to obtain more positive market validation from our key focus markets: Finland, Germany, Switzerland, Italy, and Saudi Arabia. Following that, the completion of the two ongoing migraine studies will be a priority. Overall, these are efforts that we believe will positively impact a successful exit outcome.
What are your three strongest arguments for an entity considering acquiring the company’s operations and the Ozilia treatment?
– First, the ability to add a well-patented, scientifically proven, and drug-free alternative to their product portfolio.
– Secondly, acquiring a de-risked, scalable, and fully developed treatment technology that can be seamlessly integrated into their own sales organisation.
– Finally, Chordate’s operations are relatively easy to acquire and integrate into an existing business and production structure.
Lastly, what would you like to say to the shareholders and guarantors who chose to participate in the rights issue?
– In today’s financing climate, securing an 80 per cent pre-guaranteed rights issue outcome for a development company in our sector is a very strong result. We have our shareholders – both large and small – as well as the additional guarantors to thank for this. It is a clear sign of confidence from our owners, providing us with a solid platform to move forward. This support is absolutely crucial as we now focus on our final strategic goal: securing a divestment of the business to a suitable partner.
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.
