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New listing of URTESTE S.A. on NewConnect

The company URTESTE S.A. was newly listed on NewConnect on 27 October 2021.

URTESTE S.A. is the 373^rd company listed on NewConnect and the 24^th new listing on NewConnect in 2021. 

Key information

* at the reference price of PLN 100 determined as equal to the issue price of series C shares offered in the public offering

Issuer's history and business

The legal predecessor of the Issuer, Urteste Sp. z o.o., was founded in April 2019. In September 2019, the Company concluded the first investment agreement between the original shareholders of Urteste sp. z o.o. and Twiti Investments regarding the project “Non-invasive cancer diagnostics at an early stage of the disease.” In February 2021, the issuer was transformed into a joint stock company.

The issuer operates in the field of medical devices for in vitro use (tests conducted in laboratory conditions, outside the body) in the field of cancer diagnostics. The company specialises in developing innovative technology to enable the detection of cancer at early stages of development. The Issuer's strategy is based on technology using an enzymatic method, which enables the development of tests to detect various types of cancer based on a urine sample. The Issuer's products will be diagnostic tests for use in in vitro diagnostics (IVD). At the current stage of development, the Issuer has identified 15 diagnostic targets: pancreatic cancer, prostate cancer, colorectal cancer, lung cancer, kidney cancer, liver cancer, biliary tract cancer, stomach cancer, oesophageal cancer, ovarian cancer, endometrial cancer, breast cancer, leukaemia, lymphoma, glioma. Currently, the Issuer's most advanced products under development are diagnostic tests for pancreatic cancer (patent application filed in June 2019) and for prostate cancer (patent application filed in June 2020) according to the principle of single tumour detection, implemented by the Company as the PANURI and EASY-TEST projects. In late 2020 and early 2021, the Issuer developed biomarkers for colorectal, lung, kidney and liver, and biliary tract cancer.

As of the Document Date, the Issuer has a permanent staff of six employees who are exclusively engaged in conducting research and development work. For their research, the employees use purchased reagents and measuring equipment owned or leased by the Company. Other activities are outsourced to specialised external companies. The Issuer outsources work related to: consultations on the selection of diagnostic equipment, arrangements with the Sanitary Inspection, preparation of documentation for a future medical device. The Issuer also uses an external patent office, law firms and accountants. As part of project implementation, the Issuer cooperates with CROs (Contract Research Organisation) providing services in the field of clinical research, non-interventional research and medical device research, data management and services related to the pharmaceutical, biotechnological and medical device industries, as well as management of the registration process of, among others, medical devices. 

The Issuer's Management Board plans to develop and commercialise the technology in cooperation with an industry partner: an international company specialising in the diagnostic area, which will be responsible for product sales in many markets. The Issuer does not plan to manufacture products on its own or to contract serial manufacturing. The Issuer does not have its own production capacity to manufacture medical devices (including for clinical research). In order to conduct registration studies, the Issuer plans to cooperate with external entities and outsource manufacturing. 

According to the information included in the information document, the introduction of a medical device to the market will require additional actions, the costs of which have not been included in the issue objectives of the Series C Shares Offering. The Issuer plans to finance the costs of these activities with funds raised in the next issue of shares.

The Company’s share capital is PLN 111,978.80 divided into 1,119,788 series A-C shares with a par value of PLN 0.1 per share including:

• 1,000,000 series A shares;
• 24,588 series B shares;
• 95,200 series C shares;

The application for introduction covers all outstanding shares other than 524,588 series A shares.

Public offering of series C shares

The Public Offering of Series C Shares took place from 24 June to 2 July 2021. The shares were offered under an information memorandum. On 7 July 2021, the shares were allotted to 139 investors in the small investor tranche and 6 shareholders in the large investor tranche. The average reduction rate of subscriptions in the small investor tranche was 37.90%.

The Issuer raised PLN 9,520,000 in the issue of Series C Shares. The funds raised in the issue will be invested in the continuation of the Issuer’s research and development work.

Issuer's selected financials:

Shareholders

• Adam Lesner – 241,808 shares representing 21.59% of share capital and votes;
• Natalia Gruba – 209,018 shares representing 18.67% of share capital and votes;
• Twiti Investments– 204,918 shares representing 18.3% of share capital and votes;
• Grzegorz Stefański – 184,422 shares representing 16.47% of share capital and votes;
• Tomasz Kostuch - 184,422 shares representing 16.47% of share capital and votes;
• Other shareholders (unrelated)  – 95,200 shares representing 8.5% of share capital and votes;

Financial instruments newly introduced to NewConnect:

• 475,412 series A shares;
• 24,588 series B shares;
• 95,200 series C shares;

The application covers shares representing 53.15% of the share capital.