Selvita Raised Over EUR 20 Million in Its Follow-on Public Offer

KRAKOW, Poland, June 3, 2020 /PRNewswire/ -- Selvita S.A. [ticker: WSE: SLV] ? one of the largest preclinical contract research organizations in Europe, successfully allotted 2.38 million of C series shares, raising EUR 20.6 million from investors. It is the second largest transaction in terms of capital raised, on the Warsaw Stock Exchange this year.

As part of the Follow-On public offering of shares, investors could buy up to 2.38 million shares of the new C series, which constitutes about 15 percent of the current Company's share capital. The issue price of the shares was set at PLN 38,00. The company has achieved in full its intended goal regarding capital raise that was presented in the strategy published together with the announcement of the shareholders' meeting.

"The success of this share issue demonstrates investors' confidence in both Selvita and the development strategy we have announced, as well as their trust in the large potential of the Company's  business. I would like to express my gratitude for the participation in the share issue, as well as supporting our strategic plans. Rest assured, that we will make every effort to execute the assumptions of our strategy and continue Selvita's dynamic growth on the global preclinical CRO market," comments Bogus?aw Sieczkowski, co-founder and Chief Executive Officer at Selvita.

The capital raised will allow the Company to execute the development strategy adopted by the Company for the upcoming years which assumes that in 2023 the Company will be able to achieve over EUR 70 million in revenues at a stable EBITDA margin and as a consequence reach a market cap of over EUR 230 million. The proceeds from the share issue will be used mostly on acquisitions of selected European CROs (app. 16 million EUR), and the reminder of the proceeds will be devoted to further organic growth of Selvita.

Selvita is interested in companies which will either complement the current Selvita offering, or will allow for the expansion of its scale of operations. In terms of the qualitative criteria for choosing the acquisition target, Selvita will favor entities supplementing their portfolio of services in the area of drug discovery or regulatory studies. By the end of 2023, the Company intends to execute three acquisitions, with the first one taking place this year.

Over the next three years, the Company plans to invest EUR 35-50 million in the acquisitions.

As a key element supporting further organic growth, Selvita strategy includes establishment of the Selvita Research Center, with a research space of 4,000 m2. With the completion of the new Center, Selvita will have in aggregate 10,000 m2 of research space available. Own laboratories and strengthening the scientific staff, will allow Selvita to increase its scale of business, expand its offer and launch innovative new services. Initiation of the investment is planned for next year and expected to be finalized at the turn of 2022 and 2023.

IPOPEMA Securities S.A. acted as the global coordinator and bookrunner, and Chabasiewicz Kowalska & Partners law firm acted as the legal advisor.

About Selvita

Selvita is a CRO (Contract Research Organization) Company providing multidisciplinary support in resolving the unique challenges of research within area of drug discovery, regulatory studies, as well as research and development.

The company was established in 2007 and currently employs ca. 500 professionals, of which over 1/3 hold PhD title. Selvita is headquartered in Krakow, Poland, with a second research site in Poznan, Poland and foreign offices located in Cambridge, MA and South San Francisco, in the U.S., as well as in Cambridge, UK. Selvita is a major shareholder in Ardigen ? bioinformatics company harnessing advanced Artificial Intelligence methods for novel precision medicine.

The company has a proven track record of successfully completed projects and customers in 40 countries. Majority of Company revenues come from pharma, biotech, chemical and agrochemical companies from the US and Europe. Selvita is listed on the Warsaw Stock Exchange (WSE:SLV). For more information, please see www.selvita.com.

Forward-Looking Statements

This release may contain forward-looking statements, including, among other things, statements regarding the guidance from management and financial results. Selvita cautions the reader that forward-looking statements are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which might cause the actual results, financial conditions, performance or achievements of Selvita, or industry results, to be materially different from any historic or future results, financial conditions, performance or achievements expressed or implied by such forward-looking statements. In addition, even if Selvita's results, performance, financial conditions, and the development of the industry in which it operates are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of publication of this document. Selvita expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or regulation.

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Media contact:
Natalia Baranowska
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+48 784 069 418

SOURCE Selvita