Biotie Therapies Corp. Timo Veromaa, President and CEO EGM 28.11.2006
Future outlook 2006 (1/2) (As presented in the AGM 30 March 2006) Commercialize the European and Asian rights of nalmefene Bring the antibody program to the clinical development phase. BioTie is in discussions with new potential development partners to continue the recombinant heparin program.
Future outlook for 2006 (2/2) (As presented in the AGM 30 March 2006) BioTie s R&D spending during 2006 is expected to be somewhat lower compared to 2005. The company does not expect to receive milestone payments from agreements with Seikagaku Corporation and Somaxon Pharmaceuticals during 2006. The liquid resources are forecasted to be sufficient to finance the company s operations until the end of February 2007 BioTie is investigating different options to strengthen its financial position.
FINANCING The company has been investigating potential for fundraising involving international investors starting Q4 2005 The target was to raise approximately 15 million euros International financing market down-turn Q2 2006
EGM New Companies Act (Osakeyhtiölaki) entered into force September 2006 According to the new Act, the Finnish Accounting Standards (FAS; kirjanpitolaki) treatment of capital loans in balance sheet changed According to FAS, as of 30 September 2006, the equity (oma pääoma) of the company without taking into account the capital loans is less than one half of the share capital (osakepääoma) According to section 20, paragraph 23 of the Companies Act, the Board has to convene an EGM to resolve on measures
Institutional offering Existing institutional owners expressed unwillingness to commit to significant further financing Aim to raise financing to fund company s operations for a minimum of 1,5 years Discussions with several institutional investors Pequot expressed serious interest to invest EUR 10 Million Pequot pre-condition that the Company s largest existing shareholders, or their order, shall subscribe for the new shares in the Offering at the value of three (3) million euro. Pursuant to this, the Company s shareholders, Thominvest Oy and Dreadnought Finance Oy gave an underwriting to subscribe shares so that the said companies and Sitra or entities nominated by them will subscribe for new shares at the aggregate subscription price which is at maximum EUR 3,000,000.
Shareholder offering Historically, limited interest from non-large investors in previous financing rounds in 2003 and 2005 63% of existing owners declined to subscribe in the offering Other shareholders to be given the opportunity to participate in the offering with identical terms as the institutional investors
Use of proceeds Commercial partners expressed concern over sufficiency of company s working capital Revenue from commercial agreements alone not sufficient to safely fund the operations into next significant milestones
Laimennettu osakemäärä Osakkeita 52,675 miljoonaa Vaihtovelkakirjoja 1,278 miljoonaa Optio-oikeuksia 5,000 miljoonaa Yhteensä 58,953 miljoonaa Laskelmissa käytetty laimennettua osakemäärää Vaihtovelkakirjan optio-oikeuksien haltijoiden yhdenvertaisuus
Osakeannin mitoitus Merkitsemällä jokaista kolmea omistamaansa osaketta kohtaan kaksi uutta, osakkeenomistaja säilyttää suhteellisen omistuksensa ennallaan Osakkeen keskikurssi kaupankäynnin määrällä painotettuna ajalla 27.9.-26.10.2006 = 0,6328 euroa Keskikurssi vähennettynä 20%:lla -> Osakkeen merkintähinta on 0,51 euroa Uusien osak- Omistus ennen Omistus osake- keuden suhde osakeantia Osakeanti annin jälkeen vanhoihin Merkintätakauksen antaneet ja 37 376 025 5 882 353 43 258 378 merkintäoikeudesta luopuneet tahot Muut osakkeenomistajat 21 577 196 14 716 000 36 293 196 68,2 % Pequot Capital 19 607 843 19 607 843 Yhteensä 58 953 221 40 206 196 99 159 417 Omistusosuus ennen Omistusosuus osakeosakeantia Osakeanti annin jälkeen Merkintätakauksen antaneet ja 63,4 % 43,6 % merkintäoikeudesta luopuneet tahot Muut 36,6 % 36,6 % Pequot 0,0 % 19,8 % Yhteensä 100,0 % 100,0 %