Cyxone AB has decided to complete the acquisition of drug candidate Rabeximod and issue approximately 1.9 million shares to complete the payment to OxyPharma AB. Cyxone entered into an acquisition agreement with OxyPharma in June 2017 for the drug candidate Rabeximod and now chooses to complete the transaction.
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Cyxone entered an agreement to acquire Rabeximod, a drug candidate in phase II development for rheumatoid arthritis (RA), in June 2017, with an arrangement that the company could choose to decide when the transaction would be completed, and payment will be paid under specific conditions. The company has now decided to complete the transaction and payment to OxyPharma through a non-cash issue consisting of 1,916,372 shares, which at today's share price corresponds to approximately 11.5 million SEK (issue rate at approximately 6.01 SEK). The payment means that the transaction is completed, but additional compensation may be paid in the future, as OxyPharma, under the agreement, is entitled to 10% of future net income linked to Rabeximod through, for example, advance payments and royalties from licensees of the product.
"The acquisition of Rabeximod is the most important milestone since Cyxone was founded. I have been following Rabeximod's development in OxyPharma for a long time and believe that this investment is very beneficial for our shareholders. We have in a short time been able to build a world-class autoimmune product portfolio, which has permeated the discussions we have had with different stakeholders regarding the financing of Rabeximod's phase IIb study," said Kjell G. Stenberg, CEO of Cyxone. "This is why we are now taking the opportunity to complete the payment and hope to return soon to our shareholders with more positive news regarding Rabeximod."