NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES. PLEASE REFER TO "IMPORTANT INFORMATION" AT THE END OF THE PRESS RELEASE.
29 NOVEMBER 2022, 22:40 CET
OssDsign AB (publ) ("OssDsign" or the "Company") has carried out a directed new share issue of 14,268,626 shares at a subscription price of SEK 4.60 per share (the "Directed New Share Issue"), consequently raising proceeds of approximately SEK 65.6 million before deduction of transaction costs. The Directed New Share Issue is carried out to finance the Company's expansion plans and growth in line with the Company's strategy "ASCENT25". The subscription price has been determined through an accelerated bookbuilding procedure performed by Skandinaviska Enskilda Banken AB ("SEB") as Sole Bookrunner.
The Board of Directors of OssDsign has, based on the authorization given by the annual general meeting held on 1 June 2022, and as communicated in the Company's press release earlier today, resolved on and carried out the Directed New Share Issue of 14,268,626 shares, which among others were subscribed by Adrigo Small & Midcap and two of the Company's largest shareholders, Karolinska Development AB (publ) and Lancelot Asset Management.
The subscription price in the Directed New Share Issue was set to SEK4.60 and has been determined through an accelerated bookbuilding procedure carried out by the Company's financial advisor SEB, why it is the Board of Directors' assessment that the subscription price is in accordance with market conditions. The subscription price corresponds to a discount of approximately 5.5 per cent to the last 10 days' volume weighted average share price. Through the Directed New Share Issue, OssDsign will receive approximately SEK 65.6 million before deduction of transaction costs.
The rationale for carrying out the Directed New Share Issue is to secure financing of the Company's previously communicated strategy and expansion plan "ASCENT25". The growth strategy involves, among other things, building a global bone graft business, accelerate growth in the US, expand product portfolio and accelerate clinical programs. The board of directors is of the opinion that the Directed New Share Issue is positive for the Company's capital structure and general risk level. The board of directors has also considered the possibility to raise the required equity through a rights issue. The board of directors has concluded that a rights issue would have entailed significantly longer execution time and thereby increased market risk exposure compared to a directed issue. In addition, given the market volatility that has been observed in 2022, and which is still ongoing, the board of directors has assessed that a rights issue would also have required significant underwriting commitments from an underwriting syndicate, which would have entailed additional costs and/or additional dilution depending on the type of consideration paid for such underwriting commitments. Moreover, unlike a rights issue, the Directed New Share Issue has broadened the shareholder base and provided the Company with new reputable owners, which the board of directors believes will strengthen the liquidity of the shares and be beneficial to the Company. In light of the above, the board of directors has made the assessment that the Directed New Share Issue with deviation from the shareholders' preferential rights was the most favourable alternative for OssDsign and in the best interest of the Company's shareholders. As the subscription price in theDirected New Share issue was determined through a bookbuilding procedure, the Board of Directors assesses that the subscription price reflect current market conditions and demand.
The Directed New Share Issue entails a dilution of 20 per cent of the share capital and total number of shares and votes in the Company (i.e. the new shares in the Directed New Share Issue will represent 20 percent of the share capital and total number of shares and votes in the Company after the Directed New Share Issue). Through the Directed New Share Issue, the number of outstanding shares and votes will increase by 14,268,626,from 57,074,504 to 71,343,130. The share capital will increase by SEK 891,789.125, from SEK 3,567,156.50 to SEK 4,458,945.62.
In connection with the Directed New Share Issue, the Company has undertaken, with customary exceptions, not to issue additional shares for a period of 180 calendar days after the delivery of the new shares to investors in the Directed New Share Issue. Board members and senior executives, including the CEO and the CFO, have undertaken not to sell any shares in OssDsign for a period of 180 calendar days after the delivery of the new shares to investors in the Directed New Share Issue, with customary exceptions.
SEB act as Sole Bookrunner and Setterwalls Advokatbyrå AB is legal advisor in connection with the Directed New Share Issue.
For more information, please contact:
Morten Henneveld, CEO
Phone: + 46(0)73 382 43 90
Anders Svensson, CFO
Phone: + 46(0)70 272 96 40
This information is such thatOssDsign AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 29 November 2022, at 22:40 CET.
OssDsign is a developer and global provider of next generation bone replacement products. Based on cutting edge material science, the company develops and markets products that support the body's own healing capabilities and thereby improve the clinical outcome in a wide range of orthopedic areas with high medical needs. With a product portfolio consisting of patient-specific implants for cranial surgeries and an off-the-shelf synthetic bone graft for spine surgeries, OssDsign give back patients the life they deserve. The company has a strong commercial presence in the U.S., Europe and selected Asian countries. OssDsign's share is traded on Nasdaq First North Growth Market in Stockholm, Sweden. Erik Penser Bank AB is the Company's Certified Adviser.
Publication, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in the Company in any jurisdiction.
This press release is not a prospectus for the purposes of Regulation (EG) 2017/1129 (the "Prospectus Regulation") and has not been approved by any regulatory authority in any jurisdiction. The Company has not authorized any offer to the public of shares or rights in any member state of the EEA and no prospectus has been or will be prepared in connection with the Directed New Share Issue. In any EEA member state, this communication is only addressed to and is only directed at "qualified investors" in that member state within the meaning of the Prospectus Regulation.
This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into the United States, Australia, Canada, Hong Kong, Japan, Singapore, South Africa or in any other jurisdiction where such announcement, publication or distribution of the information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.
In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, "qualified investors" who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.
SEB is acting for the Company in connection with the transaction and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for giving advice in relation to the transaction or any other matter referred to herein.
This press release does not constitute a recommendation concerning any investor's decision regarding the Directed New Share Issue. Each investor or potential investor should conduct his, her or its own investigation, analysis and evaluation of the business and information described in this press release and any publicly available information. The price and value of the securities can decrease as well as increase. Achieved results do not provide guidance for future results.
This press release contains forward-looking statements that reflect the Company's intentions, assessments, or current expectations about and targets for the Company's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release. Readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertakes to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release.
Information to distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the current shares in the Company have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment"). Notwithstanding the Target Market Assessment, distributors should note that: the price of the shares in the Company may decline and investors could lose all or part of their investment; the shares in the Company offer no guaranteed income and no capital protection; and an investment in the shares in the Company is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Directed New Share Issue.
For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in the Company.
Each distributor is responsible for undertaking its own target market assessment in respect of the shares in the Company and determining appropriate distribution channels.
This information was distributed by Cision http://www.cisionwire.se/