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STOCKHOLM, SWEDEN – July 14, 2021. Karolinska Development AB (Nasdaq Stockholm: KDEV) today announces that holding company Umecrine Cognition has completed a new SEK 35.1 million managed share issue to expand ownership base prior to a planned IPO and to fund the continued clinical development of the Company’s golexanolone drug candidate. At the same time, Karolinska Development chose to convert loans totaling SEK 66.9 million into Umecrine Cognition shares at the same subscription price as when issuing new shares.
Umecrine Cognition develops golexanolone, a drug candidate with a whole new type of mechanism of action targeting GABAA receptor in the brain. The drug candidate works by attenuating the incorrect activation of the receptor which can occur in a number of cognitive and psychiatric diseases, thereby restoring normal nerve signaling. Positive results of a phase 2 study of golexanolone in patients with hepatic encephalopathy, published in the reputable scientific journal Journal of Hepatology, justify the launch of late clinical phase studies and the extension of the development program to other pathological areas.
Through the issuance of shares, Umecrine Cognition will receive SEK 35.1 million to be used for further clinical development of golexanolone and preparatory activities for a planned IPO application on the Nasdaq First Growth Market during of the fourth quarter of 2021.
“Over the past year, Umecrine Cognition has made great strides in the development of golexanolone. The publication of the positive results of phase 2 in the Journal of Hepatology constitutes a clear guarantee of quality and provides a solid basis for the design of the continuing clinical development program. The great interest in participating in the new issue of shares of the company and in the conversion of loans into shares of Karolinska Development gives the company an excellent financial situation to vigorously pursue its value creation before the planned IPO ” , comments Viktor Drvota, CEO of Karolinska Development.
Hepatic encephalopathy (HE) is a neuropsychiatric and neurocognitive disease that occurs in acute and chronic liver injury with underlying liver failure. The disease is serious and affects up to 1% of the population in the United States and the European Union, and about a quarter of patients who develop EO die within five years. In addition to individual suffering, HE is associated with significant costs to society. Each year, 180,000 to 290,000 patients are treated in hospitals in the United States for complications from HE.
Following the new issue of shares and the conversion of loans into shares, Karolinska Development’s stake in Umecrine Cognition amounts to 72.59%.
Vator Securities acted as financial advisor to Umecrine Cognition in connection with the issue of shares.
For more information, please contact:
Viktor Drvota, CEO, Karolinska Development AB
Telephone: +46 73 982 52 02, e-mail: [email protected]
Johan Dighed, General Counsel and Deputy Managing Director, Karolinska Development AB
Telephone: +46 70 207 48 26, e-mail: [email protected]
About Karolinska Development AB
Karolinska Development AB (Nasdaq Stockholm: KDEV) is a Nordic life sciences investment company. The company is focused on identifying breakthrough medical innovations in the Nordic region that are developed by entrepreneurs and management teams. The Company invests in the creation and growth of businesses that transform these assets into business products designed to improve the lives of patients while providing an attractive return on investment for shareholders.
Karolinska Development has access to world-class medical innovations at Karolinska Institutet and other leading universities and research institutes in the Nordic region. The Company aims to build companies around leading scientists in their fields, supported by experienced management teams and advisers, and co-financed by specialized international investors, to offer the best chances of success.
Karolinska Development has a portfolio of ten companies targeting innovative treatment opportunities for life-threatening or severe debilitating diseases.
The Company is led by an entrepreneurial team of investment professionals who have a proven track record as entrepreneurs and have access to a strong global network.
For more information, please visit www.karolinskadevelopment.com.