Promore Pharma: Raising capital at a deep discount
Research Note
2019-10-07
08:55
The announcement of a rights issue (guaranteed up to 80 percent) was no big surprise. The surprise was instead the insufficient size of capital being raised (~SEK 75m), the very deep discount of the issue price (~70% compared to the previous closing), and high transaction costs (16-20% depending on subscription amount). Taking all this into account, we lower our base case value.
KP
Klas Palin
Disclosures and disclaimers