2cureX Newsletter
Dear 2cureX news subscriber,
Decision to raise funds
During the spring of 2020 we have executed an Early Access Program where we have met with several hospitals and in-vitro diagnostic (IVD) distributors throughout Europe. Here we received a clear message: – there is a need for a test like IndiTreat® in multiple cancers and at different stages of the disease. To exploit this trend, we decided to take in more funds to make the test more broadly available than originally anticipated and allow us to expand the test into additional cancer entities beyond colorectal cancer. A part of this strategy is to automate the IndiTreat® whereby we can decentralize the testing beyond our two current test facilities in Copenhagen and Hamburg.
2cureX successfully closed a financial transaction as of the 6th of July 2020
On the evening of Monday the 6th of July, we issued a press release with information of a successful directed issue which provided the Company with approximately SEK 40 million. The issue was directed to a selected group of investors. Yesterday, we received several questions from our current shareholders of why they were not offered a chance to defend their shareholding. It is an understandable reaction; but we sincerely believe that the present capital rise is providing a tremendous opportunity for 2cureX and its shareholders – both new and current.
Why a Directed Issue and not a Rights Issue?
We choose to conduct a Directed Issue instead of a Rights Issue because it was the most cost-effective way for 2cureX and its shareholders, and it would allow 2cureX to diversify its shareholder base.
The new shares were sold with a limited discount of 10% of the share price. This should be compared to a 30-40% discount in a Rights Issue. The share price was calculated by Nasdaq by using a Volume Weighed Average Price (VWAP) over a short period of time. The new investors paid SEK 33 for two shares and one warrant.
To some extent, to compensate the current shareholders for the dilution they will experience due to the directed issue, 2cureX have decided to offer one warrant per 10 held shares, free of charge to the current shareholders. The warrants will allow the holder to buy 2cureX shares nine months from now with a 30% discount.
Who are the investors in the Directed Issue?
We are not allowed to reveal the identity of the individual investors; but what we can say is that the biggest investor in this transaction is a major German investor with an important financial and technical network in Germany and other parts of Europe. 2cureX has a subsidiary in Hamburg, and we see the central European market as key to 2cureX’s future success. It therefore is a pleasure to see such investor in 2cureX.
2cureX Highlights
- 2cureX completes a directed issue of SEK 40 million
- Interview of the new 2cureX board members
Nils Brünner and Michael Lutz to join the 2cureX board
https://www.biostock.se/2020/07/2curex-styrelse-far-dubbelt-tillskott/
I hope that this Newsletter explains why the present capital rise is important for 2cureX’s future success, and how this is an attractive financial opportunity for both new and current shareholders.
We look forward continuing to keep you updated about the company’s progress in the months to come.
Stay Safe.
Summer regards
Ole Thastrup
CEO of 2cureX
URL: www.2curex.com