The board of Dicot Pharma AB ("Dicot" or the "Company") has announced its intention to resolve a rights issue of units, consisting of shares and warrants, totaling approximately SEK 125 million before transaction costs (the "Rights Issue"). The Company has received subscription commitments from its largest shareholders, including Bertil Lindkvist, Tor Finans AB, and Torsten Söderberg, both privately and through companies, as well as from the Company's founder, Jarl Wikberg, and all board members and senior executives, amounting to approximately SEK 17.5 million, which corresponds to 14.0% of the Rights Issue. A smaller number of external investors have provided guarantee commitments totaling approximately SEK 63.8 million, corresponding to 51.0%. Consequently, the Rights Issue is secured up to approximately 65.0%.
Dicot’s full press release can be found here.
Dicot is developing LIB-01, a drug candidate designed to treat erectile dysfunction and premature ejaculation in men, which are common conditions worldwide. Studies show that more than half of all men over 40 experience some degree of erectile dysfunction. The Company's goal with LIB-01 is to create a new generation of potency drugs that surpass current treatments by offering longer-lasting effects, fewer side effects, and a differentiated mechanism of action. A drug with prolonged effectiveness would provide significant benefits, allowing those affected to avoid planning their sex life, leading to a more normal daily life and improved quality of life.
"LIB-01, with its unique duration of action, promises a paradigm shift in the treatment of erectile dysfunction. It is the first revolutionary molecule in this field since Viagra,"
comments Dr. Harin Padma-Nathan, a world-leading medical expert in erectile dysfunction.
Dicot has made significant progress in developing LIB-01. In 2024, the Company successfully completed its Phase 1 clinical trial, showing very positive results that confirm LIB-01 has a good safety profile. Furthermore, a signal of effectiveness was observed, with some participants reporting improved erectile function up to 28 days after the first dose.
Simultaneously, the Company has made substantial preparations for an upcoming Phase 2a clinical trial, including GMP manufacturing of the study drug. The Company intends to initiate Phase 2a trials in Q4 2024.
Now, the Company is planning a rights issue of units to fund the Phase 2a trial. Additionally, Dicot aims to start preparations for a Phase 2b clinical trial in parallel. This aligns with Dicot’s business strategy of developing LIB-01 in-house through Phase 2a. Before entering the later clinical phases, Dicot's ambition is to collaborate with established pharmaceutical companies to finance, further develop, and launch LIB-01 in the global market.
The net proceeds from the Rights Issue, after deduction of transaction costs, will be used to finance the following activities:
Dicot is developing LIB-01, expected to become a potency drug for better treatment of erectile dysfunction and premature ejaculation. The ambition is to create a drug with significantly longer-lasting effects and far fewer side effects than those currently available. Today, over 500 million men suffer from these sexual dysfunctions, and the market is valued at approximately SEK 80 billion.
Dicot’s main strategy is to develop LIB-01 in-house through Phase 2a clinical trials. After that, the Company plans to partner with larger pharmaceutical companies to finance and develop LIB-01 into a fully registered drug for the global market.
Dicot is listed on Spotlight Stock Market and has approximately 5,700 shareholders.
For more information, visit www.dicotpharma.com.
Corpura acts as Sole Coordinator and Joint Bookrunner, together with Penser by Carnegie and Carnegie Investment Bank AB (publ), in connection with the planned Rights Issue.
For more information contact:
Alexander Kangas
+46(0)72-252 34 51
alexander.kangas@corpura.se
