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Zealand Pharma A/S, a biotechnology company focused on the discovery and development of innovative peptide-based medicines, announces private placement and directed issue of 3,761,470 new shares, each of a nominal value of DKK 1 (the "New Shares"), representing approximately 6% of Zealand's currently registered share capital, to two reputable institutional shareholders, a US-based life sciences investment firm and a global investment management company. Zealand expects to receive gross proceeds from the Private Placement of approximately DKK 1.45 billion (USD 214 million).
Terms of the Private Placement
The Private Placement was made pursuant to applicable exemptions from the obligation to publish a Danish prospectus in Denmark as well as exemptions from the U.S. Securities Act and the securities laws of other applicable jurisdictions. As part of the Private Placement, Zealand will issue a total of 3,761,470 New Shares, each of a nominal value of DKK 1, at a subscription price of DKK 386.45 per New Share. This subscription price represents the volume-weighted average price (VWAP) on 8 January 2024 for Zealand's shares quoted on Nasdaq Copenhagen. The Private Placement was made without pre-emption rights for Zealand's existing shareholders.
The New Shares are expected to be registered with the Danish Business Authority on 12 January 2024 and admitted to trading and official listing on Nasdaq Copenhagen A/S, in the ISIN code for the existing shares, DK0060257814, following issuance, expectedly on 15 January 2024.
Carnegie Investment Bank, filial af Carnegie Investment Bank AB (publ), Sverige and Jefferies GmbH acted as joint financial advisors for the Private Placement. Plesner Advokatpartnerselskab is acting as legal counsel to Zealand in the Private Placement. Kromann Reumert and Milbank LLP are acting as legal counsel to the joint financial advisors.
The net proceeds from the Private Placement are expected to be used to further strengthen Zealand’s investment in its differentiated assets targeting obesity.
“The additional funding announced today allows us to further strengthen the investment in our obesity portfolio” said Zealand Pharma CFO Henriette Wennicke. “At Zealand, we are focused on maximizing the value of our differentiated peptide-based product candidates targeting obesity and related co-morbidities. This includes advancing our long-acting amylin analog, petrelintide, and our first-in-class dual GLP-1/GLP-2 receptor dual agonist, dapiglutide, through comprehensive Phase 2b trials expected to start in late 2024 and early 2025, respectively.”