Scandion Oncology Announces Rights Issue to Raise Approximately SEK 60 Million
Scandion Oncology has initiated a rights issue to raise approximately SEK 60 million, with the possibility of securing up to SEK 306 million. This financial move is aimed at supporting the company's ongoing development projects, especially the CORIST trial for metastatic colorectal cancer, and to lay the groundwork for a larger randomized study. The rights issue involves the issuance of Units, each comprising four shares, three warrants of series TO 2, and one warrant of series TO 3, offering shareholders the opportunity to subscribe for new shares.
The company has already secured subscription commitments of approximately SEK 0.4 million from existing shareholders, board members up for re-election, and several members of management, including the CEO, CFO, and CMO. Additionally, guarantee commitments of about SEK 30.2 million have been received from existing shareholders and external investors, covering approximately 50% of the rights issue. The total coverage from subscription undertakings and guarantee commitments amounts to SEK 30.6 million, representing about 51% of the rights issue.
Scandion Oncology's CEO, Francois Martelet, emphasized the importance of this capital raise for completing the final step of the CORIST trial, which involves optimizing the dosing regimen before initiating a randomized clinical trial. The company has significantly reduced spending through restructuring and focusing on its main asset, extending its runway by more than 12 months. However, the existing working capital is deemed insufficient to finance the continued development needs and the progression of the CORIST trial into its final phase.
The rights issue is contingent upon the approval of necessary authorizations at the annual general meeting scheduled for 6 May 2024. The subscription period is intended to run from 4 June 2024 to 20 June 2024, with the record date set for 31 May 2024. The final terms of the rights issue, including the subscription price, are expected to be announced by 23 May 2024.
Scandion Oncology is a clinical-stage biotech company focused on developing first-in-class medicines to treat cancer resistant to current treatment options. The company's lead candidate, SCO-101, is currently in clinical phase I and II trials, with promising data reported from the CORIST trial in patients with metastatic colorectal cancer. The rights issue represents a critical step in Scandion's strategy to advance its innovative treatments and improve outcomes for cancer patients worldwide.