Enzymatica AB

The Board of Directors of Enzymatica AB decides on rights issue of SEK 98.7 million

Press release

October 18, 2018

The Board of Directors of Enzymatica AB decides on rights issue of SEK 98.7 million

The Board of Directors of Enzymatica AB (publ) has decided to carry out a rights issue of a maximum of SEK 98,678,187.20 with preferential rights for existing shareholders. The purpose of the rights issue is to finance continued marketing campaigns and clinical studies on the efficacy of ColdZyme besides repaying a bridge loan. The rights issue is subject to approval by an Extraordinary General Meeting to be held on November 5, 2018. Under the terms of the rights issue, one (1) existing share in Enzymatica carries one (1) subscription right, while seven (7) subscription rights entitle the holder to subscribe to four (4) new shares at a price of SEK 1.90 per share. The company intends to secure the rights issue to 100 percent through subscription commitments and underwriting agreements.

Background and reasons

Enzymatica AB develops and sells medical devices for infection-related diseases. The products are based on a barrier technology that includes marine enzymes. The company's first product is ColdZyme Mouth Spray, which can prevent colds or reduce the duration of disease. The product has been launched in around ten markets. The strategy is to continue to grow by strengthening the company's position in existing markets and expanding into new geographic markets through established partners.

ColdZyme, which is one of few products that addresses the cause of colds by protecting the mouth and throat against viruses, has established itself in just a few years as one of the best-selling cold products in Swedish pharmacies. The product is currently sold in Sweden, Denmark, Norway, Finland, Iceland, the UK, Spain and Greece, as well as through its partner STADA in Germany, Belgium and Austria. The Company is negotiating with a number of potential distributors to launch ColdZyme in other markets.

On October 17, 2018 Enzymatica entered into an agreement regarding the Japanese market, one of the largest health care markets in the world. Access to the Japanese market is conditioned upon approval by the regulatory authorities, with expected launch in 2020.

Enzymatica believes there is substantial potential for ColdZyme and that the company is well-positioned for continued growth that will result in rising profitability. The impending rights issue will strengthen the company's financial position while enabling continued growth initiatives and implementation of the company's clinical trial program. In addition, the proceeds from the rights issue will be used to repay the bridge loan of SEK 30 million from June 2018.