HUDDINGE, Sweden, Aug. 30, 2004 (PRIMEZONE) -- At Karo Bio AB's special general meeting on Monday August 30, 2004 the following was resolved.
Approval of decisions on New Share Issue
The special general meeting approved the decision on a new share issue with preferential right to subscribe for existing shareholders. The rights issue includes no more than 11 260 043 shares at a nominal value of SEK 5 each, in summary with the following conditions:
-- Each three shares held entitles to subscribe for two new shares
-- The subscription price is SEK 8.50 per share
-- Record date for participation in the rights issue is September 8, 2004, consequently the last date for trading in the Karo Bio shares including subscription rights is September 3, 2004
-- Trading in subscription rights will take place during the period September 13 - 28, 2004
-- The subscription period is from September 13 - October 1, 2004
-- Prospectus, subscription form and issue statement will be distributed to Karo Bio's shareholders beginning on or about September 10, 2004
-- Through the rights issue, the company will raise approximately SEK 96 million before transaction costs and assuming that the rights issue is fully subscribed.
Resolution to authorize the board to issue additional new share
The special general meeting further resolved to authorize the board to decide on a new issue of shares of up to 2,815,010 shares, corresponding to approximately 10 percent after the rights issue of new shares as per above, at a price per share of SEK 8.50. The authorization shall be used only provided that the rights issue resolved as per above has been executed and over-subscribed.
Entitled to subscribe for new shares shall be those who were recorded as shareholders on the record date and who have not been allotted all shares subscribed for in the rights issue. Provided the authorization is used, investors who have applied for new shares in accordance with guarantee undertakings or statements of intent to subscribe for shares and who have not received shares to the extent applied for in the rights issue will be allocated shares. The authorization also involves giving special regard to shareholders seeking to increase their holding up to one trading lot.
Subscription shall be made during the subscription period for the rights issue. The authorization will raise approximately SEK 24 million before transaction costs and assuming full utilization.
KARO BIO AB (publ)
For further information, please contact Bjorn O. Nilsson, President & Chief Executive Officer, phone +46 8 608 60 20
Facts about Karo Bio
Karo Bio has operations in Huddinge, Sweden. The Company has 95 employees.
Karo Bio has been listed on the Stockholm stock exchange (Reuters: KARO.ST) since 1998 and maintains a leading position in the field of drug discovery focused on nuclear receptors. Nuclear receptors are validated drug targets for a number of clinical indications and the Company uses proprietary technologies for the development of novel and improved therapies for major markets.
Karo Bio has drug discovery programs in several therapeutic areas including women's health care, cancer, cardiovascular disease, atherosclerosis and diabetes.
Karo Bio collaborates with major pharmaceutical companies for the development of products and marketing. In these collaborations Karo Bio receives upfront payments, R&D funding and milestone payments, as well as royalties on net sales when products reach the market.
Karo Bio has strategic pharmaceutical drug discovery collaborations with Merck & Co., Inc. and Wyeth Pharmaceuticals.
This press release is also available online at www.karobio.com and at www.waymaker.net.
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http://www.waymaker.net/bitonline/2004/08/30/20040830BIT00200/wkr0001.pdf