Spago Nanomedical Receives TO12 Exercise Intentions from Major Owner, Board, and Management

Spago Nanomedical, a Swedish biotech company listed on Nasdaq First North Growth Market, has announced significant backing from its largest shareholder, Peter Lindell, as well as from members of its board and management team. These key stakeholders have expressed their intent to exercise a considerable portion of their series TO12 warrants to subscribe for new shares in the company. This move is expected to result in the exercise of around 60% of the outstanding warrants.

CEO Mats Hansen emphasized that the commitments from major stakeholders underscore the progress the company is making, particularly with its Tumorad program. The Tumorad program is currently undergoing a "first-in-human" clinical trial aimed at treating patients with advanced cancer. Hansen expressed gratitude for the trust placed in the company's direction and looked forward to leveraging this support to further their clinical objectives.

In the fourth quarter of 2023, Spago Nanomedical issued a total of 127,321,212 warrants as part of a rights issue of units. These warrants are exercisable until May 30, 2024, allowing the holder to subscribe for one new share per warrant. The subscription price has been set at SEK 0.20 per share, and if all warrants are exercised, the company stands to raise approximately SEK 25.5 million before issuance costs.

The funds raised from the exercise of these warrants are earmarked for several key initiatives. Primarily, they will be used to secure results from the phase I segment of the Tumorad-01 clinical trial, which is currently evaluating biodistribution and the potential therapeutic effects of the treatment. The findings from this phase I trial will inform decisions about the focus and commencement of the phase IIa part of the study. Additionally, the funds will help strengthen the company's organizational capacity as it advances its Tumorad program.

The Tumorad program aims to provide effective radionuclide therapy to more cancer patients. The drug candidate, Lu177-SN201, employs lutetium-177, an isotope already used successfully in cancer treatments. This isotope is combined with Spago Nanomedical's unique nanomedical platform. Clinical results from the company's other development program, SpagoPix, along with non-clinical results from Tumorad, have demonstrated that this nanomedical material is both safe and capable of targeting growing tumors. These properties have resulted in prolonged survival in various cancer models treated with Lu177-SN201. The ongoing clinical trial in cancer patients is progressing well, with the goal of generating early-stage results to support continued clinical development.

Spago Nanomedical AB specializes in developing polymeric materials for precise cancer treatment and diagnosis. The company’s projects are still in the clinical development phase, with a focus on leveraging these materials to improve outcomes for patients with cancer and other serious diseases.

This recent show of support from key stakeholders is a significant endorsement of Spago Nanomedical's clinical progress and its strategic direction. As the company moves forward with its clinical trials and development programs, the raised funds will be crucial in driving their innovative treatments toward broader application.