Mendus raises approximately SEK 317 million through the directed issue to Flerie and a fully secured rights issue
Stockholm, Sweden
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Mendus raises approximately SEK 317 million through the directed issue to Flerie and a fully secured rights issue
On June 8, 2023, Mendus AB (publ) (“Mendus” or the “Company”), (NASDAQ Stockholm: IMMU), announced that the Board of Directors had resolved on, subject to the general meeting’s subsequent approval, a capital raise of approximately SEK 317 million (the “Transaction”), comprised of a directed issue of shares and warrants to Flerie, of approximately SEK 90 million (the “Directed Issue”), in combination with a rights issue of units of approximately SEK 227 million (the “Rights Issue”). On July 10, 2023, the extraordinary general meeting approved the Board of Directors resolution on the Rights Issue and the Directed Issue. Today, Mendus announces the outcome of the Rights Issue. Through the Rights Issue, Mendus will receive total proceeds of approximately SEK 227 million before the set-off of shareholder loans provided by Van Herk Investments of approximately SEK 50 million and transaction costs.
Outcome
The outcome of the Rights Issue shows that 43,528,426 units, equivalent to approximately 64.4 percent of the Rights Issue, were subscribed with the support of unit rights. In addition, 2,696,986 units were subscribed without the support of unit rights, of which 2,696,986 units, equivalent to approximately 4.0 percent of the Rights Issue, were allocated to investors who subscribed without the support of subscription rights. Thus, guarantee commitments for 21,339,425 units, equivalent to approximately 31.6 percent of the offered units, will be utilized.
In total, Mendus will through the Rights Issue and the Directed Issue receive approximately SEK 317 million before set-off and transaction costs. The net proceeds from the Transaction will be used to finance the next steps of development in Mendus’ clinical and pre-clinical portfolio, the process development for the manufacturing of vididencel and ilixadencel, as well as establishing the manufacturing alliance with NorthX and extending the Company’s cash runway to Q4 2024.
”The positive survival read out of the ADVANCE II trial in December 2022, the continued progress of our cancer maintenance therapy candidate vididencel and the evolution of our broader pipeline provide the basis for the next phase of Mendus’ corporate development” said Erik Manting, PhD, Chief Executive Officer of Mendus. “We thank our existing and new shareholders for supporting this financing round and look forward to additional data read-outs of the ongoing ADVANCE II and ALISON trials, the start of new clinical trials with both vididencel and ilixadencel and to commence the manufacturing alliance with NorthX Biologics.”
Notice of allotment
Notice of allotment of units subscribed without the support of unit rights will be sent through a settlement note around July 31, 2023. Subscribed and allocated units are to be paid in cash in accordance with the instructions on the settlement note. The allocation of units subscribed without preferential rights has been made in accordance with the allocation principles stated in the prospectus published by Mendus on July 11, 2023. Nominee-registered shareholders will receive information regarding allocation and payment according to the procedures of the nominee.
Shares and share capital
Through the Rights Issue, Mendus’ share capital will increase by SEK 23,647,692.95, from SEK 10,134,725.60 to SEK 33,782,418.55, and the number of shares in Mendus will increase by 472,953,859 shares, from 202,694,512 shares to 675,648,371 shares. Through the Directed Issue, the number of shares will increase by 187,500,000 and the share capital will increase by SEK 9,375,000.00.
Trading with BTU and conversion of BTU to shares and warrants
The BTU (Sw. “Betald Tecknad Unit“) will be tradable on Nasdaq Stockholm until the Rights Issue has been registered with the Swedish Companies Registration Office and the BTUs have been converted into shares and warrants. The last day of trading with BTUs is expected to take place on August 8, 2023. Shares subscribed with the support of unit rights are expected to be registered with the Swedish Companies Registration Office around August 10, 2023, and are expected to start trading on Nasdaq Stockholm around August 10, 2023. Shares subscribed without the support of unit rights are expected to be registered with the Swedish Companies Registration Office around August 10, 2023, and are expected to start trading on Nasdaq Stockholm around August 10, 2023.
Warrants
Upon full exercise of the warrants of series TO3 (the “Warrants”) from the Rights Issue and the Directed Issue, lapsing 29 March 2024, the Company will receive additional proceeds of up to approximately SEK 90.6 million. The exercise price of the Warrants is SEK 0.48, i.e. the same as the subscription price in the Transaction. Mendus intends to use proceeds from the Warrants to finance the continuation of its operations and extension of cash runway to Q3 2025, including futility analysis of the oral azacitidine (5’aza) combination trial with vididencel as a first step towards pivotal-stage trial design and primary analysis of the ilixadencel proof-of-concept trial.
Advisors
Pareto Securities AB is acting as the Sole Manager and Bookrunner in connection with the Transaction. Advokatfirman Delphi KB is acting as legal advisor to the Company in connection with the Transaction. Baker & McKenzie Advokatbyrå KB is the legal advisor to Pareto Securities AB in connection with the Transaction.
FOR MORE INFORMATION, PLEASE CONTACT:
Erik Manting
Chief Executive Officer
E-mail: ir@mendus.com
INVESTOR RELATIONS
Corey Davis
LifeSci Advisors, LLC
Telephone: + 1 212-915-2577
E-mail: cdavis@lifesciadvisors.com
MEDIA RELATIONS
Mario Brkulj
Valency Communications
Telephone: +49 160 9352 9951
E-mail: mbrkulj@valencycomms.eu