Active Biotech provides updated information about the company's financial position - the company currently lacks funding to e...
December 07 2017 - 01:00PM
PRESS RELEASE
Active Biotech (Nasdaq Stockholm: ACTI) provides updated
information about the company's financial situation. As informed by
the company in the interim report for January-September 2017, the
partnership agreements with Teva Pharmaceutical Industries Ltd and
NeoTX Therapeutics Ltd have a decisive impact on the company's
future revenues and financial position. In addition, as stated in
the interim report, the Board has decided to sell the company's
property in Lund as a possible way of generating additional
liquidity for the company.
On December 1, 2017, the ARPEGGIO study, with laquinimod in primary
progressive MS (PPMS) sponsored by Teva, was reported not to
achieve its primary end point. The results have a decisive negative
impact on the continued development of laquinimod in PPMS and thus
also on Active Biotech's development and financing, as the ability
to carry out capital acquisition from current or new owners
deteriorated significantly.
The sales process initiated by the board regarding the company's
property in Lund is ongoing but has not yet led to completion. A
write-down requirement regarding the value of the property may be
applicable.
The company has a credit agreement regarding the property. The loan
debt amounted to SEK 210.8 million on September 30, 2017. The
company has a covenant with the lending bank that the company's
liquidity should never fall below SEK 30 million. The company has
requested that this covenant will be waived by the bank in the
course of the sales process, together with a deferred amortization
during the same period. However, no agreement has yet been reached
with the lending bank.
Active Biotech wants to raise attention to that the above will,
unless a sale of the property at a value generating additional
liquidity or another solution is achieved, lead to that the company
will lack funding to ensure its business the coming twelve-month
period. The company currently has liquidity deemed necessary to
finance operations until the end of the second quarter of
2018.
Lund, December 7, 2017
Active Biotech AB (publ)
Helén Tuvesson
President and CEO
For further information, please
contact:
Mats Arnhög, Chairman of the Board
Tel. +46 8 545 03 770
Mobile +46 705 91 50 96
Helén Tuvesson, President and CEO
Tel. +46 46 19 21 56
Hans Kolam, CFO
Tel. +46 46 19 20 44
Active Biotech AB (publ)
(NASDAQ Stockholm: ACTI) is a biotechnology company with focus on
neurodegenerative/inflammatory diseases and cancer. Laquinimod, an
orally administered small molecule with unique immunomodulatory
properties is in development for neurodegenerative diseases in
partnership with Teva Pharmaceutical Industries Ltd. ANYARA, an
immunotherapy, in development for cancer indications in partnership
with NeoTX Therapeutics Ltd. Furthermore, commercial activities are
conducted for the tasquinimod, paquinimod and SILC projects. Please
visit www.activebiotech.com for more information.
Active Biotech AB
(Corp. Reg. No. 556223-9227)
Box 724, SE-220 07 Lund, Sweden
Tel: +46 (0)46 19 20 00
This information is information
that Active Biotech AB is obliged to make public pursuant to the EU
Market Abuse Regulation. This information was submitted for
publication, through the agency of the contact person set out
above, at 19.00 p.m. CET
on December 7, 2017.
Active Biotech provides updated
financial information
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Active Biotech via Globenewswire
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