UPPSALA, Sweden--(BUSINESS WIRE)--Regulatory News:
During the second quarter of 2010 Novo A/S subscribed for a convertible bond issue of MSEK 111 by Orexo AB. The bonds have a fixed rate coupon of 8 per cent per annum and a conversion price of SEK 47.50.
When Orexo AB’s share price exceeds the conversion price by 50% during a certain period, Orexo AB has the right to convert the convertible bonds and accrued interest into shares. The conditions for conversion were met on August 23, 2013 and Orexo AB then resolved to exercise its right to convert. Pursuant to the conditions for the bonds, not only the principal is converted at the time of conversion, but also unpaid accrued interest.
The number of shares in Orexo AB will thereby increase by 2,460,526 to 32,532,858 shares and participating interest of Novo A/S will increase to 29.6% of the capital and votes.
“The conversion of the bonds into shares increases our equity by MSEK 111 and thereby the equity/assets ratio by approximately 19 percentage points to 37 percent, calculated on the basis of the financial position in the second quarter of 2013. On an annual basis our interest expenses decrease by MSEK 9. The improvement in earnings together with a stronger balance sheet strengthens our financial position ahead of the coming launch of Zubsolv®in the USA,” says Nikolaj Sørensen, President and CEO of Orexo AB.
Orexo is an emerging specialty pharma company with commercial operations in the United States and R&D in Sweden developing improved treatments using proprietary drug delivery technology. Orexo’s expertise is within the area of reformulation technologies and especially sublingual formulations. The company has a portfolio of revenue-generating US and EU approved products currently marketed under license and a pipeline of several reformulations of approved compounds for areas of unmet medical need. Orexo also has collaboration projects with several international pharmaceutical companies. Orexo, with its headquarters in Sweden, is listed on NASDAQ-OMX. The largest shareholders are Novo A/S and HealthCap.
Orexo is required under the Financial Instruments Trading Act to make the information in this press release public. The information was submitted for publication at 08:00 am CET on August 26, 2013.
For information about Orexo AB, please visit www.orexo.com.
This information was brought to you by Cision http://news.cision.com