Emisjon
The Board of Directors of Episurf Medical AB (publ) (Episurf or the Company) has today resolved on a capital raise of approx. SEK 140m in total allocated between a directed share issue of class B shares (the Directed Issue) of SEK 90m and an issue with preferential rights for existing shareholders of class B shares (the Rights Issue) of approx. SEK 51m. The resolution by the Board of Directors is subject to approval by the Extraordinary General Meeting and the Board of Directors therefore issues notice to an Extraordinary Shareholders Meeting that is planned to be held on March 10 2020. A number of institutional and well reputable investors intend to subscribe for shares in the Directed Issue and have undertaken to, without compensation, guarantee such part of the Rights Issue that is not covered by subscription commitments. The Rights Issue is thereby 100 percent covered by subscription commitments, guarantee commitments and intentions. Investors in the Directed Issue include among others Strand Kapitalförvaltning Fonder, The Fourth Swedish National Pension Fund, Nyenburgh Investment Partners and Rhenman Partners Asset Management.
The share issues will finance the EPIC-Knee study in the US and Europe and carry the costs for continued expansion of the European business, including commercialization efforts and investments in clinical studies.
Background and motive
Episurf Medical addresses major medical needs not met by todays orthopaedic industry, with a vision to help more people return to living their lives as they wish. To fulfil this vision, Episurf Medicals business idea is to provide orthopaedic surgeons with clinically first-class patient-specific treatment alternatives through Episurf Medicals proprietary technology for imaging analysis, implant design and manufacturing. Episealer technology is mainly aimed at patients suffering from early signs of osteoarthritis of the knee joint, but the Company has also recently launched an implant technology for osteochondral injuries of the Talus bone in the ankle.
The Episealer technology for knee injuries, which is now gaining more and more attention in Europe with the help of very promising study results, represents a unique treatment method for an orthopaedic treatment gap. Episurf is of the opinion that this treatment gap is of significant size on a global basis. Based on the clinical results that have been published and presented to date, the Company concludes that the Episealer technology leads to strong clinical improvements, fast rehab and high implant survival rates. As of February 6, 2020, 617 surgeries had been performed in Europe with Episurfs implant Episealer. The Company has now expanded its product portfolio to also include an ankle implant, for which the Company obtained CE approval in January 2020, as well as a visualization tool for knee joints, which was CE-marked in September 2018. During 2020, the Company expects published results from several clinical studies which are being conducted in Europe, and the Company has also initiated a clinical trial in the US, which will constitute an important part of the Companys future FDA-application.
The clinical performance of the Episealer implant is the single most important factor for the Company now preparing to expand its operations in existing, as well as into new markets. In view of the fact that more money will be required to execute the set strategy, the board of Episurf Medical has resolved, subject to approval by the EGM, on a Rights Issue which is covered by intentions, subscription and guarantee commitments up to 100 per cent, corresponding to approximately SEK 51m as well as a Directed Issue of SEK 90m.
Comment from Episurfs CEO, Pål Ryfors
We are delighted that several well-known sophisticated investors have chosen to participate in Episurfs latest round of financing, adding an important new pillar to our shareholder base and strengthening our position. We are also welcoming our existing investors to continue to support us by participating in the share issue. In the coming year, we anticipate the publication of significant new clinical evidence in support of the Episealer technology, which will help us to continue to deliver and even accelerate the rapid growth that we are enjoying. So far in 2020 we have seen the order-book more than double over the prior period, and we look forward to expanding further into selected new markets. Through the current share issue, we are securing our financial requirements at least until mid-2022, by which time we will have achieved several additional commercial and clinical milestones. The coming years are critical to the company, with much activity planned in both Europe and the US. Finally, I would like to express my appreciation and thanks to both existing and new shareholders for their belief in Episurfs future opportunities. The entire company is confident that we can achieve great commercial success while bringing relief and hope to thousands of suffering patients who currently go untreated. - Pål Ryfors, CEO.
The Rights Issue in brief
The Board of Directors has today, February 7 2020, subject to subsequent approval by the EGM scheduled to be held on March 10 2020, resolved to offer existing shareholders to subscribe for class B shares in Episurf at a subscription price of SEK 1.50 through a Rights Issue. The Rights Issue comprises up to 34 099 033 class B shares, fully subscribed equivalent to an increase of the share capital of SEK 10 238 368.76. The total issue amounts to SEK 51m before issue costs.
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