Munich – The Management Board of Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) resolved yesterday, with the approval of the Supervisory Board, to increase the company’s capital against cash contributions by partially utilizing the approved capital. The Company’s share capital of currently EUR 10,000,000.00 will be increased by EUR 1,000,000.00 to a total of EUR 11,000,000.00 by issuing 1,000,000 new no-par value bearer shares with a notional value of EUR 1.00 each in the share capital against cash contribution.
The issue price of the new shares was set at EUR 25.75 per share, resulting in gross issue proceeds of EUR 25,750,000.00. Shareholders’ subscription rights for the new shares were excluded in accordance with § 4 (3) of the Articles of Association. The subscription was made in a private placement by the Active Ownership Group, an independent, owner-managed investment company that acquires significant shares in medium-sized, listed companies in the DACH region and Scandinavia.
The funds raised from the capital increase will be used primarily for the expansion and further development of the Company’s own product pipeline. Strategically, the development of biosimilars remains the company’s focus. The additional liquidity provides Formycon with the opportunity to develop the projects into late stages of development and thus tap significant value creation potential. With FYB206, the company has a promising preclinical biosimilar project in which important milestones have already been reached and value-generating intellectual property (IP) has been built up. In addition, Formycon is pursuing a promising approach in the development of novel antibody-based COVID-19 medicines. The transfer of this project into clinical trials is planned for next year.
The new shares will shortly be approved for trading in the “Scale” segment of OTC trading at the Frankfurt Stock Exchange and will be entitled to a share of profits from the start of the financial year, for which the Annual General Meeting had not yet passed a resolution regarding the use of the balance sheet profits at the time that the shares were issued.