Cereno Scientific (Nasdaq First North: CRNO B) (the "Company"), an innovative biotech pioneering treatments to enhance and extend life for people with rare cardiovascular and pulmonary diseases, announced that major long-term shareholders and new investors have confirmed their strong support by participating in the recently communicated financing arrangement, amounting to a total of up to SEK 650 million with SEK 100 million raised in a directed share issue (the "Directed Issue"), warrants with premium strike prices that may add further equity capital of up to 200 million, and up to SEK 350 million in loan financing. Along with external investors, major shareholders in the company have chosen to participate in the Directed Issue at a premium to the current share price. In addition, all convertibles and warrants issued in the financing transaction has an exercise price with a premium of more than 45 percent compared to the volume-weighted average price of the last ten trading days.
Premium participation of this kind is rarely seen in the biotech sector, regardless of timing or listing venue. The structure was designed to incorporate the Company's long-term major shareholders and new investor, whose decision to invest at premium terms stands in contrast to the broader market. The commitment from participating shareholders indicates strong belief in the Company's clinical development, the potential of its pipeline and its long-term ability to create value. It also demonstrates alignment with Fenja Capital, the financial partner in the arrangement, and reinforces a positive view on the company's future potential.
The Directed Issue was subscribed by certain existing shareholders, including Cihan Punar, David Palm, Jan Butt, Anders Eljegård, Tim Rönnborg, Jonathan Ljuskvist, Louisa Razai och Andreas Fuentes-Rivera, Ringsökalven Förvaltning AB, Myrlid AS, Peyman Pournouri, Vasa Capital AB, as well as external investors, Niklas Estensson, and Bojan Markovic.
"I am very pleased that we have managed to raise equity on what we consider very good terms and that our participating shareholders have chosen to support the Company at premium terms," said Sten R. Sörensen, CEO and Board member of Cereno Scientific. "Their willingness to participate at a premium and to receive warrants with more than 45 percent premium compared to the volume-weighted average price of the last ten trading days), demonstrates clear confidence in where the Company is heading in terms of clinical success and future shareholder value. With this financing solution in place, we now have a clear and efficient path toward starting and running our Phase IIb program with CS1 in pulmonary arterial hypertension (PAH) with limited dilution for our shareholders. This effort combines the vision and purpose of Cereno Scientific: to bring pioneering treatments to patients with rare cardiovascular and pulmonary diseases while in parallel creating long-term shareholder value."
"It is highly encouraging to see long-term shareholders and new investors taking such a proactive and positive stance in supporting Cereno Scientific at premium terms," says Jeppe Øvlesen, Chairman of the Board of Cereno Scientific. "This commitment reflects trust in the Company's strategy, advancing pipeline and leadership. Their support in the current market environment provides a solid foundation as we move toward significant clinical milestones and continue providing a strong position for business development activities."
For further information, please contact:
Tove Bergenholt, Head of IR & Communications
Email: tove.bergenholt@cerenoscientific.com
Phone: +46 73- 236 62 46
About Cereno Scientific AB
Cereno Scientific is pioneering treatments to enhance and extend life. The company's innovative pipeline offers disease-modifying drug candidates to empower people suffering from rare cardiovascular and pulmonary diseases to live life to the fullest.
Lead candidate CS1 is an HDAC inhibitor that works through epigenetic modulation and represents a novel therapeutic approach by targeting the root mechanisms of the pulmonary arterial hypertension (PAH). CS1 is a well-tolerated oral therapy with a favorable safety profile that has shown encouraging efficacy signals of reverse vascular remodeling and improvement of right heart function as observed in a Phase IIa trial in patients with PAH. An Expanded Access Program enables patients that have completed the Phase IIa trial to gain access to CS1. CS014, a new chemical entity with disease-modifying potential, showed favorable safety and tolerability profile in a Phase I trial. CS014 is a HDAC inhibitor with a multimodal mechanism of action as an epigenetic modulator having the potential to address the underlying pathophysiology of rare cardiovascular and pulmonary diseases with high unmet needs such as idiopathic pulmonary fibrosis (IPF). Cereno Scientific is also pursuing a preclinical program with CS585, an oral, highly potent and selective prostacyclin (IP) receptor agonist that has demonstrated the potential to significantly improve disease mechanisms relevant to cardiovascular diseases. While CS585 has not yet been assigned a specific indication for clinical development, preclinical data indicates that it could potentially be used in indications like thrombosis prevention without increased risk of bleeding and pulmonary hypertension.
The Company is headquartered in GoCo Health Innovation City, in Gothenburg, Sweden, and has a US subsidiary; Cereno Scientific Inc. based in Kendall Square, Boston, Massachusetts, US. Cereno Scientific is listed on the Nasdaq First North (CRNO B). The Company's Certified Adviser is DNB Carnegie Investment Bank AB, certifiedadviser@carnegie.se. More information can be found on www.cerenoscientific.com.