Respiratorius announced the outcome of its rights issue earlier today. The total subscription rate was 50%, with guarantee commitments being utilised to cover c9% of the capital raise.

The issue contributes approximately SEK14.3m in gross proceeds (cSEK12.3m net), which prolongs the company’s cash runway for an additional two years. The issue costs were estimated at cSEK3.5m in the case of full subscription, although SEK1.9m was compensation for guarantee commitments. As not all the guarantee commitments had to be utilised, we assume that the total costs were cSEK2m.

We had estimated a subscription rate of c60% beforehand, which was slightly higher than the outcome of 50%. Nevertheless, the deviation’s impact on our fair value range is immaterial, and we maintain our valuation. Our Base Case valuation is SEK0.22 per share. Our Bull Case assumes 100% deal probability while holding all other parameters constant and is SEK0.55 per share. Our Bear Case is SEK0.03 per share.