Idogen has announced the proposal of a fully underwritten preferential rights issue, which is expected to raise proceeds of SEK 28m after issue costs. The company also proposed to issue warrants that could raise an additional SEK 45m. The funds will be sufficient to start the phase I/IIa trial for IDO 8, which has been slightly delayed due to COVID-19 and is now expected to commence in H2 2021 (previous assessment was H1 2021). We make no major estimate revisions following the Q3 report but lower our DCF-based fair value to SEK 2.7-8.2 (SEK 7-24), reflecting the expected dilution effect of the share issue and warrants. Marketing material commissioned by Idogen.
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