Extends cash runway into 2028

The company has secured DKK8.2m through a directed share issue, providing a meaningful liquidity boost. According to management, the proceeds extend the cash runway into 2028, versus our previous estimate of funding through H2 2027. We therefore view the financing as a positive and proactive step, allowing investor focus to remain on the upcoming pudafensine readout in vulvodynia, expected in February 2027. We have a fair value range of SEK4.3–6.0 per share.

What’s new? The board of directors has approved a directed share issue, raising DKK8.2m before transaction costs, which we expect to be modest. A total of 5.9m new shares will be issued at a subscription price of SEK2.05 (DKK1.39) per share, corresponding to approximately 8% dilution, with Klockhuset Investment AB the sole investor. The company has also issued 5.9m warrants to Klockhuset, exercisable at DKK1.39 per share until 30 June 2027.

What does it mean? According to the company, the proceeds will support the further development of pudafensine, advance indication selection for IP2016 and facilitate partnering activities. Management expects the proceeds to extend the cash runway into 2028, compared with our previous estimate of funding through H2 2027.

What do we do? We view the transaction positively and as a proactive step to strengthen the balance sheet, given the company’s cash position of DKK17.1m at the end of Q2, prior to the financing. Importantly, the extended cash runway should reduce concerns around potential financing needs following the expected pudafensine readout in vulvodynia in February 2027. As a result, investor focus can remain centred on the clinical outcome, which we view as the company’s most important value driver.