COPENHAGEN - Zealand Pharma A/S (NASDAQ:ZEAL), a Danish biotechnology firm specializing in peptide-based medicines, has completed a private placement, issuing new shares to secure approximately $214 million (DKK 1.45 billion). The transaction involved the sale of 3,761,470 new shares at a price of DKK 386.45 each, reflecting the volume-weighted average price on Nasdaq Copenhagen on the day of the announcement.
The private placement was executed without offering pre-emption rights to existing shareholders, a move that dilutes current ownership by about 6%. The new shares are expected to be registered with the Danish Business Authority by Thursday, January 12, and to commence trading on Nasdaq Copenhagen on Monday, January 15, under the same ISIN code as the existing shares.
Zealand Pharma intends to use the net proceeds from the private placement to advance its portfolio of obesity treatments, specifically to fund comprehensive Phase 2b trials for its long-acting amylin analog, petrelintide, and a first-in-class dual GLP-1/GLP-2 receptor dual agonist, dapiglutide. These trials are anticipated to begin in late 2024 and early 2025, respectively.
The placement attracted investment from two reputable institutional shareholders, including a US-based life sciences investment firm and a global investment management company. The company's CFO, Henriette Wennicke, emphasized the importance of this funding in strengthening Zealand's investment in its obesity portfolio.
Carnegie Investment Bank and Jefferies GmbH served as joint financial advisors for the private placement, with Plesner Advokatpartnerselskab, Kromann Reumert, and Milbank LLP providing legal counsel.
This announcement is based on a press release statement.
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