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STOCKHOLM, June 22, 2022 /PRNewswire/ — Cantargia AB (publ) (“Cantargia” or the “Company”) (Nasdaq Stockholm: CANTA) announces that the board of directors has resolved to carry out a fully covered new share issue of approximately SEK 250 million with pre-emptive rights for the Company’s shareholders (the “Rights Issue”). The purpose of the Rights Issue is to, based on the strong results recently presented, secure financing for future value-adding activities for nadunolimab (CAN04) such as the preparation of an upcoming randomized clinical study in lung cancer starting 2023, phase II/III study in pancreatic cancer in collaboration with PanCAN as well as further advancing other clinical programs for nadunolimab and CAN10. The board of director’s resolution on the Rights Issue is subject to approval by an extraordinary general meeting, which is intended to be held on 21 July 2022. A notice to the extraordinary general meeting will be published through a separate press release. Due to the Rights Issue, the Company has resolved to postpone the announcement of the interim report for the second quarter 2022 to 30 August 2022.
“Cantargia recently presented new robust clinical results within both pancreatic cancer as well as lung cancer, which have generated substantial international interest. It is therefore logical to give nadunolimab the best possible opportunity to increase the commercial value and reach the goal of providing cancer patients a new effective treatment in the future”, says Göran Forsberg, CEO of Cantargia.
Summary
· The board of directors of Cantargia has today resolved on the Rights Issue of approximately SEK 250 million. The board’s resolution on the Rights Issue is subject to approval by an extraordinary general meeting, which is intended to be held on 21 July 2022. A notice to the meeting will be published through a separate press release.
The purpose of the Rights Issue is to secure financing for (i) preparation of a randomized study regarding non-small cell lung cancer, NSCLC, starting 2023 (ii) PDAC phase II/III in collaboration with PanCAN and (iii) advancing some second wave clinical opportunities for nadunolimab (in e.g., pancreatic cancer, lung cancer, breast cancer, colorectal cancer or biliary tract cancer), after prioritization during 2022.
The Rights Issue is fully covered by a combination of intentions to subscribe, subscription undertakings and guarantee commitments, including underwriting commitments from the Joint Global Coordinators (as defined below):
the existing shareholders Fjärde AP-fonden, Alecta Pensionsförsäkring, Första AP-fonden, Handelsbanken Fonder through the investment fund Hälsovård Tema and Brushamn Invest AB have undertaken to subscribe for their respective pro rata share of the Rights Issue. In addition, Handelsbanken Fonder through the investment fund Hälsovård Tema has, subject to customary conditions, undertaken to subscribe for shares corresponding to an amount of approximately SEK 1.6 million, corresponding to approximately 0.6 percent of the Rights Issue;
all shareholding members of the Company’s management team and board of directors, which jointly hold approximately 1.0 percent of the number of shares in the Company, have committed to subscribe for their respective pro rata share of the Rights Issue, or alternatively subscribe for an amount corresponding to the proceeds of subscription rights sold;
Total subscription undertakings from existing shareholders amount to approximately 27.3 percent of the Rights Issue;
certain existing shareholders, including Swedbank Robur through the investment funds Folksam LO Sverige and Swedbank Robur Sverige have expressed their support for the Rights Issue and have declared their intention to subscribe for their respective pro-rata share of the Rights Issue, corresponding to approximately 7.7 percent of the Rights Issue;
total subscription undertakings and intentions from existing shareholders amount to approximately SEK 87 million, equivalent to approximately 35.0 percent of the Rights Issue;
Barclays Bank Ireland PLC and Carnegie Investment Bank AB (publ) (the “Joint Global Coordinators”), Fjärde AP-fonden and two former shareholders of the Company have provided guarantee commitments, subject to customary conditions, which in aggregate, amount to approximately SEK 163 million, corresponding to approximately 65.0 percent of the Rights Issue
The full terms for the Rights Issue, including subscription price, increase in share capital and number of new shares are expected to be announced around 18 July 2022. Provided that the Rights Issue is approved by the extraordinary general meeting, the record date for the Rights Issue is expected to be 25 July 2022 and the subscription period is expected to run from 27 July 2022 until 10 August 2022.
Background and resons
Cantargia is a Swedish clinical-stage biotech company developing antibody-based pharmaceuticals for cancer and autoimmune diseases. Its drug candidates target the protein IL1RAP. It is overexpressed in many solid tumor types and where Cantargia has specific patents – giving it broad therapeutic potential and many opportunities to develop unique projects through the CANxx platform built up internally.
Cantargia’s lead candidate, nadunolimab (CAN04), is a first-in-class drug candidate designed to counteract tumor promoting systems and stimulate the immune system to recognize and destroy tumor cells. It has shown promising data when combined with standard chemotherapy in 30 patients with non-small cell lung cancer (NSCLC) and 73 patients with pancreatic ductal adenocarcinoma (PDAC). In PDAC, the interim data indicate a clinically relevant survival benefit (12.7 months vs 8.5 months for historic control), PFS of 7.2 months, with 12 patients still receiving treatment. Strong effects were also observed in NSCLC patients in combination with first-line chemotherapy (response rate of 53 percent, median progression-free survival 6.8 months and median survival of 13.7 months). These results show stronger efficacy than expected from cytotoxic drugs alone and a very good safety with the possibility of reducing some serious side effects that limit the use of certain cytotoxic drugs.
These data, together with early results in combination with the immunotherapy Keytruda, were presented and discussed at three sessions during the annual meeting of the American Society of Clinical Oncology in June 2022. Moreover, the Company presented biomarker data, providing support for the mechanism of action and highlight unique properties providing significant potential in different combination treatments.
Preparations are ongoing for a potential pivotal trial in PDAC at leading US centres in collaboration with PanCAN. The formal preparatory activities with regulatory authorities are ongoing with the aim of starting the study during 2022. Following the strong effects of nadunolimab observed in NSCLC patients, Cantargia is preparing for a randomized study starting 2023.
(CONTINUA)