Addex Therapeutics (SIX: ADXN), the leading developer of oral allosteric modulators for neurological disorders, announced today that the Board of Directors will seek shareholder approval to increase its share capital by issuing up to 12,779,553 new shares at a price of CHF3.13. Each new share will receive a 7 year warrant to purchase 0.45 of a share at a price of CHF3.43. The gross proceeds, of up to CHF40 million net of certain costs and expenses associated with the placement, will be used to advance Addex’s portfolio of drug candidates, including registration studies for lead program, dipraglurant, for levodopa-induced dyskinesia associated with Parkinson’s disease (PD-LID). Of the up to CHF40 million placement, CHF30 million has been committed by New Enterprise Associates, New Leaf Venture Partners, CAM Capital and clients of Herculis Partners and Semper Finance Group. The remaining up to CHF10 million of the share offering are planned to be placed through a book building process starting today.
“Launching this CHF40 million fundraising with commitments in place from several world-leading healthcare investors is a pivotal step in the continued progress made recently at Addex. It provides the financial flexibity to deliver not only on late-stage product development, but clearly sets us firmly on the path to a US listing.” said Tim Dyer, CEO of Addex. “This significant cash injection will allow us to quickly advance our lead product, dipraglurant, into pivotal registration studies for PD-LID, one of the most distressing and difficult to treat aspects of Parkinson’s disease. In addition, we intend to advance the rest of our portfolio of proprietary allosteric modulators to key value inflection points.”
The share offering will be conducted as a private placement of shares and warrant shares in Switzerland and abroad to qualified institutional investors, subject to certain limitations based on residency in compliance with applicable securities laws.
The Addex shareholder’s meeting to approve the capital increase is expected to be held on or around 21 March 2018 and the first trading day of the newly issued shares is expected to be on or around the 28 March 2018.
MTS Securities, LLC is acting as the lead and institutional US placement agent in connection with the Placing. Herculis Partners SA, Kepler Cheuvreux SA, Octavian AG and Semper Finance Group SA are also acting as placement agents for Addex in the offering.