Egetis: Raises SEK210m in a directed share issue

Research Note

2023-01-25

08:59

Redeye endorses the news that Egetis Therapeutics has conducted a directed share issue of SEK210m and give our initial take.

FT

Fredrik Thor

Yesterday evening, Egetis announced its intention to carry out a directed share issue, which later during the night was oversubscribed. Egetis raised SEK210m before costs at a share price of SEK6, compared to the closing price of SEK6.4. According to the release, new investors include AXA Investment Managers, Handelsbanken Hälsovård Tema, and Medical Strategy GmbH. Furthermore, already existing shareholders such as Fourth Swedish National Pension Fund (AP4), Unionen and Linc AB participated.

We are overall positive to the transaction and the opportunistic timing following last month’s rally (still up some 60%, despite the negative trend last couple of days). The additional capital need was a key challenge that we raised in our recent research update, and we now judge that the company should have funding into 2024 (possibly enough until the voucher sale). We already included a rights issue (SEK250m) in our base case at a slightly lower share price and made some minor revisions but for now reiterate our base case of SEK 18 per share. We will further revise our case in relation to the Q4 report, where we will return with a research update. Overall, we think that the investment case in Egetis has strengthened and that the case is increasingly derisked from a financial perspective, especially important in today’s market.

Disclosures and disclaimers

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