On December 18th, STENOCARE announced that the company has resolved a rights issue of up to DKK 20.2m at a subscription price of DKK 0.5. The capital increase is conditional upon a minimum of a total subscription rate of approximately 45 percent, providing the Company with approximately DKK 9.1m before deduction of transaction related costs. STENOCARE has received legally binding written pre-subscription commitments and compensation free guarantees from management and existing shareholders of DKK 1.5m, corresponding to approximately 7.4% of the total Rights Issue.

In summary, the announced rights issue was anticipated; however, given the weak share price and challenging market conditions for capital raising, it results in a dilution effect of 67% for shareholders who choose not to participate, assuming full subscription. With a subscription price of DKK 0.5 per share, this corresponds to a pre-money valuation of DKK 10.1m. Considering the opportunities associated with an increased commercialization focus on Astrum oil, which is expected to drive expansion into additional markets, Analyst Group views the announced rights issue as an attractive investment opportunity.

Read Analyst Group’s comment here

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This is a press release from Analyst Group regarding the publication of a comment on STENOCARE. Readers may assume that Analyst Group has received compensation for making the comment. The Company has not been given an opportunity to influence the parts where Analyst Group has had opinions about the Company, future valuation or anything else that could be considered a subjective assessment.