Gradientech carries out a rights issue of approximately SEK 83.4 m
Uppsala, 8 December, 2021. The Board of Directors of Gradientech AB (publ) (“Gradientech” or “the Company”) decided on November 30 to carry out a new issue of shares with preferential rights for existing shareholders of approximately SEK 83.4 million (the “Rights Issue”). The Company has received subscription- and investment commitments from a selection of the Company's major existing shareholders and external investors amounting to approximately SEK 44.2 million, corresponding to approximately 53 percent of the Rights Issue. The issue proceeds from the Rights Issue are intended to be used to enable the launch of the QuickMIC system for diagnostic use and to launch QuickMIC in selected markets in Europe, and will, upon full subscription, finance the Company and its activities until the end of the first quarter of 2023.
Summary of the rights issue
• One (1) existing share in the Company entitles to one (1) subscription right. Three (3) subscription rights entitle to subscribe for one (1) new share, i.e., a subscription ratio of 1:3.
• The subscription price is SEK 20.50 per new share, which, assuming that the Rights Issue is fully subscribed, results in the Company receiving approximately SEK 83.4 million before deduction of transaction costs.
• The record date for the Rights Issue is December 7, 2021, and the subscription period runs from December 9, 2021, to December 23, 2021.
• Major shareholders, including members of the Company's executive management and board members, have expressed their support for the Rights Issue through subscription commitments amounting to approximately SEK 21.7 million, corresponding to approximately 26 percent of the Rights Issue. Furthermore, the Company has entered into agreements on investment commitments of approximately SEK 22.5 million, corresponding to approximately 27 percent of the Rights Issue.
• The company intends to publish a prospectus regarding the Rights Issue today, December 8, 2021.
Background and motives for the Rights Issue
Since 2012, Gradientech has had products for research purposes on the market based on a technology platform patented by the Company. QuickMIC® – which is based on this technology – is the Company's first diagnostic product and the goal is for the system to be the fastest on the market for growth-based testing of antibiotic resistance in sepsis patients. The company's focus is now to enable a launch of the QuickMIC system for diagnostic use first in selected markets in Europe and then in the USA. According to the plan, QuickMIC will be launched in selected markets in Europe in 2022, starting in Sweden, Spain and the United Kingdom.
To ensure continued successful development in accordance with the Company's business plan and strategy, Gradientech has decided to carry out the Rights Issue. The rights issue aims to strengthen the Company's financial position to enable investments primarily in sales and marketing, in product development and establishment of production processes for increased production capacity of the Company's products, and to fund clinical studies for the regulatory processes required for an upcoming launch in Europe and USA.
The issue proceeds from the Rights Issue are intended to be distributed as follows and, if not all measures can be implemented, according to the following priorities:
- Complete the development and production transfer of the QuickMIC instrument and its first antibiotic panels with a focus on sepsis tests – approximately 20 percent of the issue amount
- Conduct clinical trials that enable the launch of the QuickMIC system for diagnostic use first in Europe, then the United States – approximately 20 percent of the issue amount
- Launch the QuickMIC system in selected European markets and build marketing and support functions – around 30 percent of the issue amount
- Establish processes for increased production capacity and reduced production costs – approximately 20 percent of the issue amount
- Develop and conduct clinical studies of an increased number of antibiotic panels – approximately 10 percent of the issue amount
Terms for the Rights Issue
Those who was registered as a shareholder on the record date of December 7, 2021, has a preferential right to subscribe for ordinary shares in the Rights Issue in relation to the number of ordinary shares held on the record date. One (1) existing share in the Company entitles to one (1) subscription right. Three (3) subscription rights entitle to subscribe for one (1) new share, i.e., a subscription ratio of 1:3.
If not all shares are subscribed for with preferential rights, the Board shall, within the framework of the maximum issue of the Rights Issue, decide on the allotment of shares to another who has subscribed for shares without preferential rights and decide how distribution between subscribers shall take place. Such distribution shall primarily take place to shareholders who the Board deems may contribute strategic values to the Company and in the second instance to other subscribers in relation to the amount subscribed, and to the extent that this cannot be done, by drawing lots.
The subscription price is SEK 20.50 per new share. Assuming that the Rights Issue is fully subscribed, the share capital will increase by a maximum of SEK 406,860.70 through a new issue of a maximum of 4,068,607 new shares. Upon full subscription, the rights issue will provide Gradientech with approximately SEK 83.4 million before deduction of issue costs. Shareholders who choose not to participate in the Rights Issue will, provided that the Rights Issue is fully subscribed, have their ownership diluted by approximately 25 percent.
Subscription of shares shall take place during the period from and including 9 December 2021 to and including 23 December 2021. The Board has the right to extend the subscription and payment period. A possible extension of the subscription period shall be announced by press release no later than the last subscription day in the Rights Issue.
Subscription – and investment commitments
Gradientech has received subscription commitments from a selection of the Company's major existing shareholders, including members of the Company's executive management and board members amounting to approximately SEK 21.7 million, corresponding to approximately 26 percent of the Rights Issue. Furthermore, the Company has entered into agreements on investment commitments, amounting to approximately SEK 22.5 million, corresponding to approximately 27 percent of the Rights Issue.
Schedule for the Rights Issue
December 7, 2021
Reconciliation Day in the Rights Issue
December 8, 2021
Publication of prospectus
9 – 23 December 2021
January 3, 2022
Estimated date for publication of the outcome of the Rights Issue
Complete terms and conditions for the Rights Issue as well as other information about the Company and information about subscription- and investment commitments will appear in the prospectus that the Company intends to publish today, December 8, 2021 (the "Prospectus"). The prospectus will be available on the Company's and the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) respective websites (www.gradientech.se, www.fi.se).
Redeye is the financial advisor and Lindahl KB acts as the legal advisor to Gradientech in connection with the Rights Issue. Nordic Issuing acts as an issuing agent.
For further information, please contact:
Sara Thorslund, PhD, CEO Gradientech
Tel: +46 736 29 35 80