InDex Pharmaceuticals: Initial take on financing terms

Today, InDex announced the terms for its rights issue; the company will raise SEK 533m at SEK 1.2 per share. Each existing share will entitle the holder to subscribe five new shares. The rights issue is fully covered by subscription undertakings and guarantee commitments from external parties. The transaction will result in a dilution of approximately 83 percent, and the subscription period will run from 22 January 2021 to 5 February 2021.

Redeye’s initial take on the financing terms presented this morning is somewhat balanced. In our view, the most vital thing is that InDex now will have the funds required to initiate the induction study with cobitolimod. However, the discount and dilution exceeded our expectations.
We will get back with our updated view of InDex shortly.