Bioceltix will raise nearly PLN 53 million gross, among other things, for the construction of a plant for veterinary medicinal products containing stem cells, which is expected to be the largest of its kind in the world. This new, large-scale plant will provide Bioceltix with industrial-scale production of biologics that combat the most common diseases in companion animals.
After analyzing the results of the accelerated bookbuilding process (ABB), the price of the shares offered was set at PLN 87. Due to significant investor interest, the decision was made to increase the number of shares offered from approximately 577,000 to approximately 727,000.
The transaction valued at PLN 63 million, of which nearly PLN 53 million gross will ultimately accrue to the company.
The transaction, valued at PLN 63 million, involved Bioceltix shares listed on the Warsaw Stock Exchange and held by two major shareholders: Alternative Solution ASI and Kvarko Group ASI. They agreed to use the proceeds to acquire newly issued Bioceltix shares at the same price as the shares sold. Under the investment agreement signed in September, Alternative Solution ASI also sold 120,000 shares without any obligation to use the proceeds to increase the company’s capital, thus partially exiting the investment approximately eight years after its inception. This will result in approximately PLN 10.5 million going to Alternative Solution ASI, while the remaining funds, amounting to nearly PLN 53 million, will go to Bioceltix. Another element of the transaction will be the issuance of new series N ordinary bearer shares, approved by the October EGM, with the pre-emptive rights of existing shareholders waived in their entirety. These shares will be offered for subscription in a private placement without a prospectus, addressed exclusively to Alternative Solution ASI and Kvarko Group ASI. Demand for the company’s shares, several times higher than the initial offering, prompted Kvarko Group ASI to decide to increase the offered pool of shares by an additional 150,000 shares, bringing the total number of shares sold in the offering to approximately 727,000. This transaction will raise an additional PLN 13 million for Bioceltix. Due to the sale of a larger number of shares than initially planned, the company must issue an additional 150,000 shares, which will be offered to Kvarko Group ASI. The issue resolution will be voted on at the next EGM, which will be convened soon.
“We are pleased that investors appreciated our plans and potential, which allowed us to place the entire offering without any problems. We sincerely thank you for your trust. The success of this transaction was made possible thanks to the support of two shareholders who offered their shares for sale: Alternative Solution ASI and Kvarko Group ASI. Both investors have been with us from the very beginning.” Of course, in the case of Kvarko Group ASI, the situation is simple, as the entity is related to me, while Alternative Solution ASI has been managing its investment for over eight years. I wish every management board such a stable shareholding, one that puts the company’s interests above its own in its investment plans. I am also very pleased that during the offering, we saw not only strong demand for our shares but also a large number of entities interested in participating. This means that the group of financial institutions supporting us is constantly growing, which is good news. Thanks to this, we can continue implementing our long-term, ambitious strategy,” comments Paweł Wielgus, member of the Bioceltix management board. “We are at the best possible market moment in terms of the development of veterinary biotechnology, but this is also one of the most important stages of our company’s development. The capital raised will enable us to build a large-scale stem cell facility at a good pace and without downtime, and will also cover operating expenses during the period leading up to production launch and validation.” “The registration of our first product, BCX-CM-J, is on the horizon, which could make us the first company in the world to have a drug containing canine stem cells approved for marketing. The new pharmaceutical facility will ensure we can produce the targeted volumes of all drugs intended for international sale,” says Paweł Wielgus.
Groundbreaking Technology in the Final Stage
Bioceltix is currently addressing the most rapidly developing therapeutic areas in small animal veterinary medicine. The company has successfully completed three clinical trials for its flagship products: canine osteoarthritis (BCX-CM-J), equine arthritis (BCX-EM), and canine atopic dermatitis (BCX-CM-AD). For the first two products, Bioceltix has already submitted applications for registration to the European Medicines Agency and is currently in dialogue with the market regulator, answering questions as part of the assessment process. The company is now in the final stage of registration of its first product – BCX-CM-J. In turn, the BCX-CM-AD product for canine atopic dermatitis, for which Bioceltix completed clinical trials this year, will be the third drug submitted to the EMA. The study results confirmed its safety and effectiveness in the short, medium, and long term. A single administration of the product significantly alleviated skin lesions after less than a month, and the therapeutic effect persisted for up to three months after administration.
Until new, increased production capacity is achieved in the plant under construction, the company plans to produce pilot series of the first product in the current, small-scale plant.
MACHINE TRANSLATION