Santhera Pharmaceuticals (SIX: SANN) announces that a vast majority of shareholders approved the ordinary capital increase at today's Extraordinary General Meeting (EGM). Participating shareholders represented a total of 2'953'737 shares or 39% of the share capital.
"We are thankful to Santhera's shareholders for their support which we take as a strong vote of confidence in our growth strategy," said Elmar Schnee, Chairman of the Board of Directors. "The additional share capital will allow us to raise the funds needed to complete the acquisition of the sub-license option to vamorolone from Idorsia and, at the same time, expedite the filing of idebenone in Duchenne muscular dystrophy (DMD) in Europe and the US, advance our pipeline projects and execute on our commercial plans."
The EGM followed the motion of the Board of Directors (BoD) and approved an increase of the Company's ordinary share capital from CHF 7,527,479 to a maximum of CHF 12,527,479 through the issuance of up to 5,000,000 new registered shares with a nominal value of CHF 1 per share. The BoD has decided to fully exploit the approved increase and to proceed with a placement of new shares by means of an accelerated book building (ABB).
Besides the upfront cash payment of USD 20 million to Idorsia for the acquisition of the option for the exclusive sub-license of vamorolone, the Company intends to use the net proceeds from the share placement to fund ongoing business activities including the commercialization of Raxone® in Leber's hereditary optic neuropathy (LHON), market entry preparations for idebenone in DMD, and the development of POL6014 for the treatment of cystic fibrosis.
Agenda and amended proposal are available on the Company's website at www.santhera.com/investors-and-media/investor-toolbox/shareholder-meetings. From the end of this week, the minutes of the EGM 2018 will also be available.