Algeta Raises $35 Million in a Private Placement
2/18/2009

Oslo, Norway, 18 February 2009 – Algeta ASA (OSE: ALGETA), the cancer therapeutics company, announces that it has raised USD 35 million (NOK 245 million) through the Private Placement of 22.3 million new shares, with a par value of NOK 0.50, at a price of NOK 11 per share.The Private Placement took place through a book-building process and was managed by ABG Sundal Collier and DnB NOR Markets. The Private Placement was directed towards existing shareholders as well as selected new institutional and professional investors, and was led by Abingworth LLP, an international investment group dedicated exclusively to the life sciences and healthcare sectors.

Completion of the Private Placement is subject to a resolution of an Extraordinary General Meeting (“EGM”). The Company will hold an EGM on 4 March 2009 (see separate announcement and notice of the EGM on www.newsweb.no and www.algeta.com). Upon approval of the Private Placement by the EGM, a prospectus for listing of the new shares will be filed with Oslo Børs. Settlement date for the new shares is expected to be on or about 6 March 2009. Following the completion of the Private Placement the share capital of the Company will comprise 38,811,608 shares.

At the EGM, the Board of Algeta will also propose that the Company effects a Subsequent Repair Offering directed to existing shareholders at the date of the EGM and who did not participate in the Private Placement. It is assumed that the Subsequent Repair Offering will comprise approximately 3.1 million shares to be offered at the same price as established through the book-building process in the Private Placement. The Subsequent Repair Offering is expected to allow Algeta to raise a further USD 5 million (NOK 35 million), provided that the Subsequent Repair Offering is fully subscribed. Algeta intends to use the proceeds from the Private Placement and the Subsequent Repair Offering to in part finance.

Private Placement Norway and Private Placement Europe

http://www.biospace.com/news_story.aspx?NewsEntityId=126714

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