AlzeCure: Our comment on the announced rights issue

Redeye comments on AlzeCure announcing a rights issue of up to SEK58.5m. The net proceeds from the issue will be used for continued safety and toxicology studies, preparations for phase I trials regarding Alzstatin for early Alzheimer's treatment, preparations for a phase IIa trial with ACD856 in early Alzheimer's, continued safety and toxicology work, and preparations for phase I trials with TrkA-NAM ACD137 for knee osteoarthritis, and intensified business development. Redeye views the decision to strengthen the cash position as a sign of sound governance. The rights issue mitigates near-term financial risk and removes the overhang of immediate funding needs, providing a stronger foundation for future share price appreciation.