Rights issue 2024

The rights issue carried out in August 2024 was subscribed to 124%, i.e., a large oversubscription. The Board of Directors used the mandate from the Extraordinary General Meeting for some over-allotment to those who subscribed with unit rights and who wanted more, but still not everyone who wanted to participate could be satisfied. With gross proceeds of SEK 134.9 million before deduction of issue costs, Dicot is pursuing the business strategy of conducting phase 2a studies for LIB-01 under its own auspices and in parallel starting preparations for the phase 2b study. Thanks to the good outcome of the issue, the development of new indications can be initiated, and important R&D activities can be brought forward.

“We are extremely pleased with the strong support from our current shareholders, and from new investors. That the Rights Issue was oversubscribed indicates on the big interest in Dicot Pharma and the credence to our drug development. We have learned that larger owners, including board members and members of management, subscribed more than the subscription commitments they entered into, which we greatly appreciate. With this fine outcome, we can, backed by a strong financial position, take the potency drug candidate LIB-01 through the so-called proof of concept phase, while also investing in the development of new indications. We are very confident about the future and want to express our warm gratitude to all of you who have supported us and will make sure to handle your trust with care”, says Elin Trampe, CEO of Dicot Pharma.

Everyone who has been allocated in the issue has received shares and warrants TO6. The warrants will be exercisable in March 2025.

Press release 2024-09-04: Dicot Pharma’s rights issue oversubscribed

Information given prior to the shares issue

Dicot Pharma is developing the drug candidate LIB-01 to treat erectile dysfunction and premature ejaculation in men, conditions that affect more than half of all men over 40 to some degree according to studies. The most commonly used potency drugs today come with certain challenges, as nearly half of all users choose to discontinue treatment. Around 35% find that the drugs do not have the desired effect, and many experience side effects and concerns about cardiovascular effects. Additionally, drugs like Viagra have a short duration of action and require planning, which reduces spontaneity in sexual life.

Dicot has taken significant steps in the development of LIB-01 with the goal of creating a long-lasting and modern drug. In 2024, a clinical phase 1 study was completed with very positive results, showing that LIB-01 has a good safety profile. An efficacy signal was also detected, where improved erectile function in some cases persisted 28 days after the first dose. Significant preparations, such as GMP manufacturing of the study drug, have already been made ahead of the clinical phase 2a study, which is planned to start in the fourth quarter of 2024.

“It has been 26 years since a new class of oral drugs for erectile dysfunction was approved. LIB-01 seems to have the potential to position itself as a new first-line treatment for erectile dysfunction.”

Harin Padma-Nathan MD, Principal Investigator for Viagra and Cialis.

Dicot is now conducting a rights issue of units amounting to approximately SEK 123 million before transaction costs. This follows the business strategy to develop LIB-01 under own auspice up to and including phase 2a studies. In parallel, the company also intends to begin preparations for the clinical phase 2b study. Dicot’s ambition is to enter into collaborations with other established pharmaceutical companies before the upcoming clinical phases to finance, further develop, and launch LIB-01 in the global market.

Subscription commitments and guarantee undertakings secure the issue to a total of approximately SEK 80 million, corresponding to approximately 65 percent.

The proceeds from the issue are intended to finance:

Implementation of the clinical phase 2a study, as well as preparations for the clinical phase 2b study.
Other R&D and scaling up the manufacturing process.
Business development, patents, quality, and regulatory processes, etc.
Preclinical studies for the development of new indications.
Corporate governance and management (including legal, IT, insurance, marketplace, personnel, board, etc.).

Why invest in Dicot?

Huge market with untapped potential.
Unique patented molecule.
Proven safety and early indications of efficacy.
Efficient organization that meets deadlines.
Extensive global expert network.

Summary of the Offer

Terms and Conditions
Shareholders who are registered as shareholders in Dicot Pharma AB on the record date of August 14, 2024, have preferential rights to subscribe for units in the Company based on their existing shareholding. For each existing share held on the record date, shareholders will receive one unit right. Possession of eight unit rights entitles the holder to subscribe for one unit in the Offering. One unit consists of eight shares and one warrant of series TO6.

Subscription Price
The subscription price in the Rights Issue is SEK 1.20 per unit, which corresponds to SEK 0.15 per share. The warrants are issued free of charge. This means that for every eight shares you own, you can subscribe to eight new shares at SEK 0.15 each, and you will also receive one warrant that gives you the right to subscribe for an additional two shares in March 2025 at a price between SEK 0.15 and SEK 0.225 each, with the price based on the average share price in early March 2025.

Subscription Period
August 16-30, 2024.

Trading in Unit Rights
August 16-27, 2024. If you wish to subscribe for more than your entitlement allows, you can buy additional unit rights during this period via Spotlight Stock Market. If you do not wish to participate in the issue, you can sell your unit rights, which would otherwise expire worthless.

Marketplace
Spotlight Stock Market

Issue Volume
The Rights Issue comprises up to 102,195,229 units, which corresponds to 817,561,832 shares and up to 102,195,229 warrants of series TO6. If fully subscribed, the Rights Issue will raise approximately SEK 122.6 million before issuance costs for Dicot. If all TO6 warrants are exercised, Dicot will raise an additional approximately SEK 46 million before issuance costs.

Subscription and Guarantee Commitments
Dicot Pharma has received subscription commitments of approximately SEK 17.4 million, corresponding to approximately 14.2 percent of the Rights Issue, from major shareholders and all members of the board and management. No compensation will be paid for these subscription commitments. In addition, the Company has received guarantee commitments from external and existing investors totaling approximately SEK 62.4 million, corresponding to approximately 50.9 percent of the Rights Issue. In total, the subscription and guarantee commitments amount to approximately 65%, equivalent to approximately SEK 80 million.

To participate
Contact your broker or bank for instructions. Or send an e-mail to our issuing agent at: www.aquratfondkommission.se.