Pharmexa Will Issue new Shares
Hørsholm - The Board of Directors of Danish Pharmexa A/S has decided in mid- April to increase the company's share capital by up to 12,299,940 new shares at a price of DKK17.00 per new share (subscription price). Pharmexa secured the minimum gross proceeds for the transaction - 5,882,353 shares totalling DKK100 million (Euro13,44 million) - by receiving commitments from five major shareholders totalling DKK43 million (Euro5,78 million), the ING Investment Banking's subscription of DKK49 million (Euro6.59 million) and H. Lundbeck A/S's option over DKK10 million (Euro1,34 million). Pharmexa's existing shareholders have pre-emption rights to the new shares at the ratio of 3:1.
The company will focus most of the financial resources on achieving clinical proof of concept in patients in its HER-2 Protein AutoVac™ programme, expected in mid 2006, subject to regulatory approval and recruitment of patients, alone or in collaboration with a partner. The proceeds from the rights issue, existing liquid resources of the company as well as income from existing and future collaboration agreements will to a large extent be earmarked for this purpose.
Pharmexa estimates that - based on the current level of activities - the operations until the middle of 2006 will require a capital injection of some DKK160 million (Euro21.51 million).