Yahoo Finance Karolinska Development’s portfolio company OssDsign raises SEK 270 million through an oversubscribed rights issue
STOCKHOLM, SWEDEN – May 12, 2021. Karolinska Development AB (Nasdaq Stockholm: KDEV) announces today that its portfolio company OssDsign completed a successful rights issue of shares with preferential rights for the company's existing shareholders to a value of SEK 240 million. The rights issue was oversubscribed, to a rate of 185%, and thus the Board of Directors decided to carry out a directed new issue of shares without preferential rights for existing owners through an over-allotment option adding an additional SEK 30 million to the company. Due to the fact that the rights issue was oversubscribed, no guarantee commitments needed to be realized. A total of SEK 270 million were raised excluding transactions costs.
In connection to the decision to conduct a rights issue, at the beginning of March this year, OssDsign presented a new corporate strategy with the purpose of realizing its potential and accelerate the company’s development towards a positive cash flow by 2025. The new strategy, ASCENT25, aims to accelerate the company's growth, value creation and innovation by 2025. The investment is intended to broaden OssDsign by supplementing the company's current focus on craniomaxillofacial indications with two additional market segments: orthobiologics and spinal surgery. The favorable outcome of the current capital fundraising enables the company's ambitions to enforce the strategic investment.
Karolinska Development is a long-term investor in OssDsign and subscribed for its pro rata share in the new share issue.
“We are very pleased with the outcome of OssDsign's capital raising, enabling a forceful implementation of the company's strategy to expand both sales and product portfolio. We look forward to following the development as OssDsign fully utilizes the enormous potential that exists for growth
companies in the orthopedic market,” comments Viktor Drvota, CEO, Karolinska Development.
For further information, please contact:
Viktor Drvota, CEO, Karolinska Development AB
Phone: +46 73 982 52 02, e-mail: viktor.drvota@karolinskadevelopment.com
Johan Dighed, General Counsel and Deputy CEO, Karolinska Development AB
Phone: +46 70 207 48 26, e-mail: johan.dighed@karolinskadevelopment.com
TO THE EDITORS
About Karolinska Development AB
Karolinska Development AB (Nasdaq Stockholm: KDEV) is a Nordic life sciences investment company. The company focuses on identifying breakthrough medical innovations in the Nordic region that are developed by entrepreneurs and leadership teams. The Company invests in the creation and growth of companies that advance these assets into commercial products that are designed to make a difference to patients' lives while providing an attractive return on investment to shareholders.
Karolinska Development has access to world-class medical innovations at the Karolinska Institutet and other leading universities and research institutes in the Nordic region. The Company aims to build companies around scientists who are leaders in their fields, supported by experienced management teams and advisers, and co-funded by specialist international investors, to provide the greatest chance of success.
Karolinska Development has a portfolio of ten companies targeting opportunities in innovative treatment for life-threatening or serious debilitating diseases.
The Company is led by an entrepreneurial team of investment professionals with a proven track record as company builders and with access to a strong global network.
For more information, please visit www.karolinskadevelopment.com
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