Pressmeddelande Publicerat: 2017-11-30 15:18:00

Oncology Venture: Decision on rights issue subject to approval at Extraordinary General Meeting

Hørsholm, Denmark, 30 november 2017 - Oncology Venture Sweden AB ("Oncology Venture") hereby announces that the board has decided to - subject to approval on Extraordinary General Meeting - conduct a rights issue of up to 2 745 143 shares at an issue price of 16,30 SEK per share. Fully subscribed rights issue provides Oncology Venture approximately 44,7 million SEK before issuing costs. The general public are also invited to subscribe for shares in the rights issue. Beforehand, Oncology Venture has agreed on subscription commitments amounting to approximately 15,8 million SEK and guarantee commitments amounting to 20,9 million SEK. The guarantee commitments are activated upside down, meaning that if the rights issue are subscribed to for example 80 percent, guarantee commitments will be activated for the remaining 20 percent. In total, 36,7 million SEK, which equals about 82 % of the rights issue's total volume, has been agreed in writing. The board has also decided to call for an Extraordinary General Meeting on January 4th 2018. Notice of Extraordinary General Meeting will be published shortly.

"Oncology Venture has during the last six months made significant progress which in our opinion brings us in a new league. Among the most important results are license agreements with Big Pharma regarding two drug candidates, and that early data from the ongoing Phase 1/2 study with LiPlaCis® shows really good on selected patients. Achievements like these gives me a very positive outlook on Oncology Venture's future", says Peter Buhl Jensen, MD, PhD and CEO of Oncology Venture.

Prioritised activities

The two latest products from Novartis Pharma AG ("Novartis") and Eisai Inc. ("Eisai") are of highest priority. If the TKI data are positive - both candidates will be confirmed predictable by the DRP and thus be highly risk reduced projects. Oncology Venture will, within 6-8 weeks from the 23rdof October, publicise data from analysis of the biopsies from Novartis' TKI-study in renal cancer. If the data are positive, this will make up the most advanced product in the pipeline and has potential to lead to an "End of Phase 2" meeting with the FDA. The PARP inhibitor for breast cancer from Eisai can have a fast start since drug capsules are already available and Oncology Venture can use already existing screening data from 1 400 breast cancer patients.

Oncology Venture has the intention to continue the development of its SPV companies' drug candidates. At the present time, patients are included in Phase 2 studies with LiPlaCis® for breast cancer and APO010 for multiple myeloma. Application for permission to start recruitment of prostate cancer patients for a planned Phase 2 study with the patients that are most likely to respond to treatment with Irofulven, has been submitted to the authorities in October 2017. Inclusion of the first 12 patients in the LiPlaCis® study was completed during Q3 2017 and the last patient is estimated to be included during Q1 2018 where we also expect to present an update on results from the evaluable patients from the phase 2 part of the study. The final results are expected to be available during Q3-Q4 2018 depending on how long the patients respond to and continue their treatment. Furthermore, the company plans to conduct a randomized Phase 2 with LiPlaCis® for breast cancer patients, which is expected to start in 2018 and is supported with grants from EUROSTARS. The company also plans to conduct a Phase 2 study with the PARP inhibitor 2X-121 in breast- and prostate cancer. These studies are planned to start in 2018. Finally, the company plans to conduct a Phase 2 study with 2X-111 in breast cancer and glioblastoma (brain cancer). In total the number of patients included in all planned trials conducted and to be conducted by Oncology Venture on all six products are around 300 patients - equivalent to the number of included patients in one (1) classic phase 2 trial design with one product. The DRP allows many shots on goal with limited resources.

The company's main goals are, among other things, to sign in-licensing agreements regarding five drug candidates and conduct five smaller clinical Phase 2 studies with these drug candidates within a three-year period from the listing at AktieTorget in June 2015. Furthermore, the goal is to, within three years from the same point in time, generate at least two drug candidates that are to be out-licensed (or sold). Oncology Venture now has six drug candidates in its pipeline with strong DRP's to find the patients that have benefit from the drugs. The goal is to conduct focused Phase 2 studies with the DRP technology. In positive turnouts in the studies, Oncology Venture wishes to either out-license, co-develop with a partner or sell the products. In a longer perspective, the company's goal is to in-license further products. Oncology Venture has during the last six months made deals regarding two drug candidates from Big Pharma and Oncology Venture hopes to be a Preferred Partner for Big Pharma when the company's DRP® has clinical evidence to strengthen segmentations of the patients that have the greatest likelihood to respond to treatment and thereby position drugs for market approval.

Motive for the planned rights issue and use of the issue funds

The work with Oncology Ventures current drug candidates runs according to plan. Oncology Venture has also formed two spin-out companies: 2X Oncology and OV-SPV2. Oncology Venture is still in an intense period with several significant activities and now has a possibility to, in a focused way, increase the pace in the company further. Therefore, the company needs to raise further capital. Thus, the company conducts a rights issue of about 44,7 million SEK before issuance costs. The raised capital will, apart from working capital, be used to conduct planned clinical studies with existing in-licensed drug candidates. Furthermore, a possibility has arisen to increase the ownership in the TKI product from Novartis from 40 % to 75 %. Furthermore, the issue funds are intended to build a financial buffer for positive results in e.g. 2X-121 and the TKI product from Novartis.

Summary of the Offer

·         Planned subscription Period: 11 - 25 January 2018. 

·         Issue price: 16,30 SEK per share. 

 ·         Volume of Issuance: Oncology Venture is hereby conducting a rights issue of 44 745 830,90 SEK, comprising a maximum 2 745 143 shares. The rights issue is also open to the public.

·         Record Date and Preferential rights: Last day of trading in Oncology Ventures stock shares including the right to receive subscription rights is 5th January 2018 and the first day of trading excluding the right to receive subscription rights is 8th January 2018. The record date is 9th January 2018. Each currently held stock share qualifies for one (1) subscription right. Possession of four (4) subscription rights entitle to subscription of one (1) new share. 

·         Subscription commitments and guarantee commitments: Oncology Venture has received subscription commitments of approximately 15,8 million SEK, which equals around 35 % of issue volume and guarantee subscriptions of 20,9 million SEK, which equals around 47 % of issue volume. Thus, in total the company has agreed on approximately 82 % of the issue volume through subscription commitments and guarantee commitments. 

·         Number of shares before the rights issue: 10 977 007 shares. 

 ·         Valuation (pre-money): Approximately 179 MSEK. 

 ·         Trading in subscription rights: Trading in subscription rights will be done at AktieTorget during the time period 11 - 23 January 2018. 

 ·         Trading in BTA: Trading in BTAs (paid subscription share) will take place on AktieTorget from 11 January 2018 until Bolagsverket (the Swedish Company Authority) has registered the new rights issue. This registration is expected to take place in mid-February 2018. 

Full terms and conditions, information on subscription commitment as well as the prospectus and the folder will be published on the company's (www.oncologyventure.com), AktieTorgets (www.aktietorget.se) and Sedermera Fondkommissions (www.sedermera.se) respective websites no later than when the subscription period of the offering begins.

Financial advisor

Sedermera Fondkommission is the financial advisor to Oncology Venture in connection with the planned rights issue. 

For further information, please contact

Ulla Hald Buhl, COO Or Peter Buhl Jensen, CEOMobile: +45 21
andChief IR & 60 89 22E-mail:
CommunicationsMobile: pbj@oncologyventure.com
+45 2170 1049E-mail:
uhb@oncologyventure.com

This information is information that Oncology Venture Sweden AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on November 30th, 2017.

About Oncology Venture Sweden AB

Oncology Venture Sweden AB is engaged in the research and development of anti-cancer drugs via its wholly owned Danish subsidiary Oncology Venture ApS. Oncology Venture has a license to use Drug Response Prediction - DRP™ - in order to significantly increase the probability of success in clinical trials. DRP™ has proven its ability to provide a statistically significant prediction of clinical outcomes from drug treatment in cancer patients in 29 of the 37 clinical studies that were examined. The Company uses a model that alters the odds in comparison with traditional pharmaceutical development. Instead of treating all patients with a particular type of cancer, patients' tumors genes are screened first and only those who are most likely to respond to the treatment will be treated. Via a more well-defined patient group, the risk and costs are reduced while the development process becomes more efficient.

The current product portfolio: LiPlaCis® for Breast Cancer in collaboration with Cadila Pharmaceuticals, Irofulven developed from a fungus for prostate cancer and APO010 - an immuno-oncology product for Multiple Myeloma.

Oncology Venture has spun out two companies in Special Purpose Vehicles: 2X Oncology Inc. a US based company focusing on Precision medicine for women's cancers with a pipeline of three promising phase 2 product candidates and Danish OV-SPV 2 will test and potentially develop an oral phase 2 Tyrosine Kinase inhibitor.

Dokument

Oncology Venture Sweden AB

"Föremålet för bolagets verksamhet ska vara att utveckla läkemedel och därmed förenlig verksamhet samt äga och förvalta aktier".

Venlighedsvej 1,
DK-2970 HOERSHOLM, Danmark
+45 21 70 10 49 http://www.oncologyventure.com