Cortendo to raise up to $27.5 mln in private placement
Cortendo AB has agreed to receive up to $27.5 million in a private placement. The investors are RA Capital Management, New Enterprise Associates, Broadfin Capital and HealthCap. Headquartered in Göteborg, Sweden and with offices in Radnor, Pennsylvania, Cortendo is a biopharmaceutical firm focused on orphan endocrine disorders.
January 13, 2015 — Radnor, Penn., U.S. and Göteborg, Sweden — Cortendo AB [ticker: CORT on NOTC-A], a global biopharmaceutical company focused on orphan endocrine disorders, today announced it has entered agreements with leading U.S. institutional specialist healthcare investors RA Capital Management, New Enterprise Associates (NEA) and Broadfin Capital. HealthCap, a leading European venture capital healthcare investor, also agreed to increase its existing investment in the company, bringing this private placement to a total of up to $27.5 million (equivalent to approximately SEK 221 million). The subscription price is SEK 4.22 per share, and the total maximum number of shares outstanding after the completion of the share issue will be 159,080,722. This investment commitment follows the Company’s move to a U.S. financing plan laid out in October 2014 when Cortendo announced an $11 million investment led by HealthCap.
“This agreement with three new leading U.S. institutional investors and HealthCap demonstrates their confidence in Cortendo and significantly strengthens the Company as we move forward with our U.S. financing strategy in 2015,” said Matthew Pauls, President and CEO of Cortendo. “We are initially focused on developing and commercializing innovative products for orphan endocrine diseases, led by COR-003 in Phase 3 development for endogenous Cushing’s syndrome. We also intend to leverage both our commercial and late-stage development expertise and work with potential partners to expand our orphan disease portfolio.”