Karolinska reports acquirer of SEK 121 million convertible loan commits to set-off

By Wendy Van Sickle

Columbus, Ohio, Dec. 12 – Karolinska Development AB said that SEK 121 million of its convertible loan has been divested by Sino Biopharmaceutical and Chia Tai Resources Ltd. to Worldwide International Investments Ltd., according to a news release.

Sino Biopharmaceutical and Chia Tai divested SEK 85 million in nominal terms, corresponding to its remaining convertible loan of SEK 121 million including accrued interest until June 30.

Worldwide has committed to set-off its convertibles by subscribing for shares in the ongoing set-off issue of series B shares to the holders of the company’s 2015/2019 convertible loan.

To enable Worldwide’s participation in this directed issue, Karolinska’s board of directors has resolved that the subscription period for the directed issue starting July 8 will be extended to Dec. 16.

The directed issue will not result in any additional new funds for the company, which is working on a number of alternatives to finance the outstanding capital requirement.

Karolinska reported that its short-term financing needs are expected to be met through a new issuance and/or a short-term credit facility.

Karolinska Development is a Nordic life sciences investment company.

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