Press release from Companies
Published: 2012-04-03 11:24:59
WntResearch AB (WNT.ST) announces that an agreement on funding has been reached with Global Emerging Markets (GEM). In total, the company is given access to funding of up to SEK 19.5 million distributed through an equity line of SEK 10 million and 1 million options with a strike price of 9.5 SEK. The terms of the financing was renegotiated in the light of the outcome of the second rights issue in December 2011 and the announcement of substantial funding from the Eurostars program.
The extraordinary shareholders meeting's resolution issued in November 2011 stated that the Board had to conclude the agreement with GEM mainly under the conditions that emerged from negotiations between the management and GEM. The fact that the primary issue volume amount will be reduced from 30 to 10 million is justified by the Board of company by the fact that the company will receive substantial financial support from Eurostars. GEM's funding commitment complements the upcoming funding from Eurostars program well. In addition, the smaller volume also lowers the company's immediate cash costs for the GEM contract to a third which is deemed essential in the current funding climate. The subscription price for the options is reduced from SEK 12 to SEK 9.50 justified by the outcome of the last rights issue. VD Nils Brünner comments: I'm very happy that this agreement with GEM who is a professional, international investor is now in place. This financing together with the Eurostars funding enables us to move on with our lead anti metastatic program Foxy-5. We will proceed with the preclinical studies, the large scale manufacturing of the drug and thereafter move into the phase 1 clinical study. I look very much forward to together with our strong team to build further value into the Foxy-5 program. About GEM Group: Global Emerging Markets Limited, www.gemny.com, was founded in 1991. GEM is a $3.4b investment group having completed 305 transactions in 65 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world. GEM's funds include: CITIC/GEM Fund; VC Bank/GEM Mena Fund*; Kinderhook; GEM Global Yield Fund; GEM India Advisors, and GEM Brazil PE Fund. *GEM exited both its LP and GP stakes in Q1 2010. Contact The Global Emerging Markets Group: Warren P. Baker, email@example.com For further information please contact: Nils Brünner, CEO E-mail: firstname.lastname@example.org Telephone: +45 2614 4708