Paid partnership

Neurovive in an exciting phase.
Takes in SEK 124 million for the next stage

Neurovive - Emission Closed

23 - 6 feb 2019

(Subtitle in English)

Neurovive has been given the green light to continue clinical studies within the area of mitochondrial drug research and has therefore initiated a preferential rights issue of approximately SEK 124 million.

Did you know that everything you do–reading, thinking, speaking and moving–depends on your mitochondria?

Mitochondria can best be described as our cells’ engines. They generate energy in our cells using the food we eat and the oxygen we breathe. Mitochondria also play a vital role in protecting our body’s cells from different types of damage, for example, from damage caused by a traumatic brain injury. Briefly put: mitochondria are essential to life. When mitochondria don’t function properly, it results in serious illness. This is what NeuroVive is driven to address, and the company stands at the forefront of mitochondrial research and drug development.

A market valued at approximately SEK 9-15 billion per year

NeuroVive is focused on what are known as orphan drugs for rare diseases that don’t yet have effective treatment alternatives. This provides advantages such as access to significant support from governmental agencies in the EU and United States who examine the design and results of clinical studies and are responsible for approving drugs. This reduces costs and shortens the length of time it takes to get a medication approved.

“Even though these diseases are rare, there are approximately 100,000 people suffering from these illnesses across Europe and the United States”, says Erik Kinnman, CEO for NeuroVive. Many of them are children. Since the mitochondria are so essential to life, those who suffer from these diseases experience rather severe symptoms. For example, there are diseases that attack the retina in men between the ages of 20-40, which can cause blindness. In children, the vital organs are often affected, which can lead to early-onset stroke, for example. There are currently no cures for mitochondrial diseases, and that is what drives my employees and myself. Since we are a small company, we are able to develop medications more cheaply than the pharmaceutical giants. We have an impact, and we have found our niche.

Overall, the market for mitochondrial diseases in Europe and the United States is estimated to be valued at approximately SEK 9-15 billion per year.

Neurovive is focused on what are known as orphan drugs for rare diseases that don’t yet have effective treatment alternatives.

CEO - Erik Kinnman

Many of them are children. Since the mitochondria are so essential to life, those who suffer from these diseases experience rather severe symptoms.

A broad project portfolio in an exciting phase

Biotechnology company Neurovive has a diversified project portfolio, which showed tremendous scientific strength during 2018. As their projects have matured, and government agencies have given the go ahead for further clinical studies in 2019, more capital is needed. In order to finance these studies, the company is now offering a preferential rights issue of approximately SEK 124 million, which is already guaranteed at 80% through subscription and guarantee commitments. The last issue was oversubscribed, meaning that the issue guarantees did not need to be offered. “We have two clinical projects in clinical development, both of which have shown promising results”, explains Erik Kinnman. With a successful preferential rights issue, we will be able to take several important steps in the process of developing these drugs. The KL1333 project has come the furthest, and we will continue with a new study which we expect to be completed by the end of 2019. Our brain injury project, NeuroSTAT, has shown very gratifying results, and the further development of the project is also supported by compelling experimental studies.

There, we have seen a reduction in trauma after brain injury of up to 35 %. We also have other exciting projects that are in the early phases that are picking up steam. We are collaborating with the Children’s Hospital of Philadelphia (CHOP) on one of these projects for which we have received major research and development grants from Vinnova and the US Department of Defence. During 2018, we have actively work to licence our NV556 project. Our hope is that the icing on the cake will be that we reach this milestone during the first half of the year.

An experienced team with a collective 170 years of experience

One of NeuroVive’s biggest strengths is its experienced team, with years of experience bringing new drugs to market. In addition to a wealth of expertise in drug development, the company also has well-documented experience in sales and marketing as well as the capacity to establish collaborative agreements that generate extra revenue. “During 2018 for example, we undertook an important out licencing deal with a potential value of approximately USD 60 million. Collectively, we have 170 years of experience in business and drug development within the management team”, explains CEO Erik Kinnman, who has 20 years of experience in the industry himself.

Low valuation and plenty to look forward to

The large need for capital has put pressure on the share price and Neurovive's valuation. At the same time, however, Aktiespararna by Analysguiden assesses that the progress already made in both the pre-clinical and clinical projects is not reflected in the current stock price. Therefore, the stock has more potential. The American company, Reata Pharmaceuticals, which is in a similar stage of development and researches diseases similar to what NeuroVive does, is valued at approximately USD 1.6 billion for example.

The last issue was oversubscribed, and the current issue is guaranteed to 80%. With more clinical studies underway, the company is looking forward to an exciting 2019.

“We have the funds to drive our projects further, and we are getting closer to bringing products to market”, explains Erik Kinnman. A market that currently does not offer any treatment options. As we deliver on these milestones along the way, we also create value for our shareholders. Those who choose to get on board for the journey ahead have a lot to look forward to!

Emission info:

Preliminary timetable for the Preferential rights issue (all dates refer to 2019)

(Swipe left)

Thursday 17 January
Last day for trading the Company’s shares, including the right to participate in the Preferential rights issue with preferential rights
Friday 18 January
First day to trade in the Company’s shares without the right to participate in the Preferential rights issue with preferential rights
Monday 21 January
Record day for obtaining subscription rights and right to participate in the Preferential rights issue with preferential rights
Wednesday 23 January
Subscription period commences
Wednesday 6 February
Final subscription day
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Neurovive’s shareholders have preferential rights to subscribe to shares. One (1) existing share which is held on the record day, 21 January 2019, entitles the shareholder to one (1) subscription right. One (1) subscription right entitles the shareholder to subscribe to one (1) share.

The subscription period runs from 23 January through 6 February 2019.

The stock subscription price is SEK 1.35 per share.

Upon full subscription to the Preferential rights issue, NeuroVive will take in SEK 123.8 million before issue costs.

The issue is 80% guaranteed through subscription and guarantee commitments.

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