Cantargia Makes a Directed Share Issue of Approximately SEK 106 Million for Increased Investments in the Clinical Development of CAN04

STOCKHOLM, March 21, 2019 /PRNewswire/ -- The board of directors of Cantargia AB (publ) has resolved, pursuant to the general meeting's authorization, on a directed share issue of approximately SEK 106 million. The proceeds from the share issue enable expanded investments in the company's main project, CAN04 (nidanilimab), with a new clinical study in the US and an expansion of the most promising patient sub-group of the ongoing clinical CANFOUR study. CAN04 is an antibody in phase IIa clinical development against non-small cell lung cancer and pancreatic cancer.

In the directed share issue, 6,618,581 new shares are issued at a subscription price of approximately SEK 16.02 per share, which means that the company is provided with approximately SEK 106 million in issue proceeds, before issue costs. The subscription price corresponds to the volume weighted average price of the Cantargia share during the latest 20 trading days.

The investors are a number of Nordic institutional investors; Alecta (approximately SEK 76.5 million), Handelsbanken Fonder (SEK 7.6 million), EWS Foundation (SEK 3.8 million) and Jesem AS (SEK 1.8 million). In addition thereto a number of private investors have subscribed for shares for approximately SEK 16.2 million, through Avanza Pension.

The proceeds from the share issue are intended to be used for two new clinical activities. The first activity is to prepare and carry out a clinical study with CAN04 in the US. The study is intended to be made in a new segment of oncology that is not a part of the ongoing clinical study CANFOUR. As a result, new complementary data will be received which enables a widening of the future market for CAN04. The second activity implies an expansion of the ongoing CANFOUR study in patients with non-small cell lung cancer or pancreatic cancer. As previously announced, treatments of patients in Phase IIa were initiated in January 2019 and the study is following plan with expected results in the beginning of 2020. The proceeds from the share issue will enable the next step of development, immediately following the report of these results. An additional 30-50 patients in the most promising sub-group of one these diseases may then be included during 2020. By focusing on groups of patients most likely to respond, further value-adding effective data will be obtained. In parallel, the company may initiate the preparations for a controlled clinical study with CAN04.