Faron Pharmaceuticals Oy has announced a share offering of approximately EUR 30.7 million, with a maximum of 30,714,592 Offer Shares at a subscription price of EUR 1.00 per Offer Share. The offering will be conducted through a public offering to private individuals and legal entities in Finland, an institutional offering to institutional investors in the European Economic Area, a separate open offer to qualifying holders of depositary interests in the United Kingdom, and a separate retail offer to retail investors in the United Kingdom on the "REX" platform.
The objective of the offering is to strengthen the company's cash position to reach key milestones for the year 2024, including a significant commercial partnership agreement and financing the product development costs until the latter half of March 2025, primarily related to the production and research costs of the lead program bexmarilimab. The offering is conditional upon the company raising at least EUR 15 million in gross proceeds, for which it has obtained binding subscription commitments and subscription guarantee undertakings.
The subscription period for the Offer Shares will commence on 5 June 2024 and end on 18 June 2024 for the Public Offering and on 19 June 2024 for the Institutional Offering. The Subscription Price has been determined on market terms, including a significant discount to the market price of the Company's shares prior to the announcement of the Offering. The Offering dilutes current shareholders' ownership share in the Company, unless the current shareholders subscribe for the Offer Shares in the Offering.
It is noted that the Offering can be completed even if it is not subscribed in full, in which case the company's funding would not be sufficient to deliver on the Company's key milestones of the year 2024 in accordance with the current business plan, and it would have to adjust and reduce its operations or seek additional funding earlier than planned. The company has appointed Carnegie Investment Bank AB, Finland Branch and Peel Hunt LLP as joint global coordinators and joint bookrunners for the Offering.