Shares of the thinly traded micro-cap biotech OASMIA PHARMACE/ADR OASM 75.61% wereadvancing strongly Friday.
What Happened
Sweden-based Oasmia, which develops new generation human and veterinary oncology drugs, said Friday ahead of the market open that it has reached an agreement with its largest shareholder Arwidsro that would settle all outstanding balances and support a planned capital infusion into Oasmia.
The agreement provides for the fulfillment of a commitment Arwidsro made in January 2018 to provide capital of 75 million Swedish krona ($7.9 million) through the exercise of warrants.
Oasmia will also acquire Arwidsro’s claims OF 60.2 million SEK to MGC for 40.2 million SEK, with the difference added to the former as a positive earnings item, according to Oasmia.
Why It’s Important
These measures will substantially reduce Oasmia’s liabilities and increase its equity and liquidity, the company said.
“It feels good to straighten out some historical question marks and close further parts of our review by fulfilling past agreements. In addition, getting SEK 20 million to reduce our debt burden is very positive,” ChairmanJörgen Olsson said in a statement.
“The most important thing now is to get progress, capital and stability to continue the path towards a commercially successful pharmaceutical company.”
Earlier on Thursday, the company announced the creation of a business advisory board to help with the commercialization of Apealea, its ovarian cancer drug, as well as the evaluation and development of market opportunities for other product candidates.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.