Earnings call transcript: Cantargia AB Q4 2024 focuses on cost cuts and innovation

Cantargia AB’s recent earnings call for Q4 2024 highlighted significant cost reductions and promising developments in its product pipeline. The company’s operating expenses were cut by 43% in the quarter, contributing to a slightly lower net reported loss. Despite these positive developments, Cantargia’s stock saw a minor decline of 1.11% following the announcement, closing at 1.51 SEK. According to InvestingPro data, the stock has experienced significant pressure, down 61.1% over the past six months, with a beta of 1.76 indicating higher volatility than the market average.

Key Takeaways

• Operating expenses reduced by 43% in Q4 2024.
• Rights issue generated SEK 120 million, bolstering cash reserves.
• Progress in clinical studies for Canten and naginolumab.
• Stock price decreased by 1.11%, trading near 52-week low.

Company Performance

Cantargia AB’s performance in Q4 2024 was marked by a strategic focus on reducing costs and advancing its clinical programs. The company successfully decreased its operating expenses by 43% for the quarter and 42% for the full year, indicating a strong emphasis on financial efficiency. This cost-cutting measure, combined with a strategic rights issue, has strengthened the company’s financial foundation. InvestingPro analysis suggests the stock may be undervalued at its current market capitalization of $26.08 million. For deeper insights into Cantargia’s valuation and 12+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.

Financial Highlights

• Operating expenses: Reduced by 43% in Q4 2024.
• Net cash outflow: SEK 26 million for the quarter.
• Cash position: SEK 33 million available, with an additional SEK 140 million including rights issue proceeds.

Outlook & Guidance

Cantargia’s future looks promising with several key milestones anticipated in 2025. The company plans to release results from the Canten MAD study in the first half of the year and initiate a Phase II study for hydradenitis suppurativa. Additionally, initial results for naginolumab in triple-negative breast cancer are expected by mid-2025. The company’s cash runway is projected to last until the end of 2025 or early 2026.

Executive Commentary

CEO Damian Maran emphasized the importance of capitalizing on current opportunities, stating, "My focus is absolutely to prioritize and capitalize on these opportunities." CFO Patrick Rheinblad noted the company’s financial stability, saying, "The runway is towards the end of the year or early 2026."

Risks and Challenges

• Continued cash outflow despite rights issue.
• Market skepticism with stock near 52-week low.
• Uncertainty surrounding new CEO’s strategic direction.
• Competitive pressures in the biotech sector.

Cantargia AB’s strategic cost management and promising clinical developments provide a solid foundation for future growth. However, the company faces challenges in maintaining investor confidence and navigating a competitive market landscape.

Full transcript - Cantargia AB (CANTA) Q4 2024:

Conference Operator: Welcome to the Contargia q four twenty twenty four report presentation. For the first part of the conference call, the participants will be in listen only mode. During the questions and answer session, participants are able to ask questions by dialing key 5 on their telephone keypad. Now I will hand the conference over to the speakers. CEO, Damian Maran, CFO, Partik Rheinblad and Chairman, Magnus Persson.

Please go ahead.

Magnus Persson, Chairman of the Board, Kantagua: Thank you, and welcome. My name is Magnus Persson. I’m the Chairman of the Board of the company. By background, I’m a medical doctor and a scientist. And I have more than three decades of professional life science investing experience.

You’re not used to seeing me at these calls, and I’m here since I would like to shed a little bit of light on the recent transition of management. The board decided after careful consideration that it was time to introduce new energy to the company and to find a manager with more transactional, commercial and international experience. Damian Marron is a Board member and thus knows the company very well and is generally well suited for the job, and he has volunteered to step in as our CEO. We, I and the Board, wish to thank Johan Forsberg for his eleven years as CEO of Kantarja and to stress that there was nothing untoward behind our decision to transition management. So with that, I would like to leave the word to Damian, and I will so Damian, the floor is yours.

Damian Maran, CEO, Kantagua: Thank you very much, Magnus. Thank you. I am very excited to be leading Kantagua at this time. We’ve got a number of very interesting opportunities in our portfolio. My intention during my tenure here is to drive and to accelerate the value creation for all of our stakeholders on the back of these opportunities.

Just to give you a brief introduction to myself, I’ve actually been forty years now in the pharma and biotech industry. I’m a scientist by training, a pharmacologist and cell biologist. I did about ten years in big pharma R and D, most of that in clinical development. I then had a couple of business roles then was Head of Business Development for three ms Healthcare in Europe for five years, moved into the biotech industry in 02/2002, a company called Micox in the South Of France, which was publicly listed. I helped raise there over million and did deals with Merck (NSE:PROR) and with Pfizer (NYSE:PFE) and with some biotechs.

I moved into CEO Inc. In 02/2008. I subsequently CEOed four companies, two of which were acquired, one by Roche for a rather nice sum of money, another by another biotech. I IPOed one of my companies on the Euronext (EPA:ENX) in Paris. And unfortunately, I also had to close one down because we couldn’t see a way forward for the company.

I moved into having a portfolio of board positions about eight years ago. And I also do advisory work with a boutique healthcare transaction advisory firm. So here we are today. Let’s have a look at the events of the fourth quarter and since that date. So we reported positive new results on biomarkers and on safety from the ongoing clinical Phase one study with Canten, our immune and inflammatory asset.

Looking at naginolumab, we had new results from the clinical studies, SESTO4 and KAPA4, where we tested naginolumab in combination with chemotherapy in several cancers. We saw positive signals of effect, particularly in non cell lung cancer and in gastrointestinal cancers. Going back to Canton, we expanded the study to explore higher doses of the antibody based on the positive results we saw and the very good tolerability. Finally, in Q4, we carried out a right issue, which generated proceeds of SEK120 million before the deduction of the issuing expenses. And obviously, as Magnus has just spoken about, since the reporting period, Joran Forsberg has stepped down as CEO, and I am now leading the company forward.

So first of all, I’m going to spend a few minutes on Canten, antibody in autoimmune inflammatory disease. This is going to be generating results in the next few weeks, starting in the next few weeks, from the multiple ascending dose part of the study. So that’s why I’m focusing on this first. Just first of all, the design of that study, that first in human study. So we have already completed that single ascending dose portion of the study and reported interesting first results.

Eventually, we did ten dose cohorts, as I have just mentioned. We increased the number of cohorts based on the results we saw. We are now in the multiple ascending dose portion of the study, where we will give four doses, two weeks apart, either to healthy volunteers or to groups of patients with plaque psoriasis. There will be two dose cohorts for the volunteers and two dose cohorts for plaque psoriasis are planned. The healthy volunteers allows us to look at higher doses and prepare for our phase two study.

I will tell you more about in just a moment. And the plaque psoriasis patients will enable us to look at mechanistic studies and biomarkers in an immune inflammatory skin disease. So if we take a look at some of those results that we saw in the single ascending dose part of the study, So as in the multiple ascending dose, the cohorts were blinded and placebo controlled. So in each dose cohort, we had six subjects on count ten and two subjects on placebo. We have reported nine dose groups from one to four hundred milligrams so far.

In terms of safety, which is always clearly a very important parameter in a first in human study, We have seen no safety signals of any significance whatsoever, which is clearly very comforting. We have been able to demonstrate, as you see in the bottom right bottom left, excuse me, in the bottom left of the slide, you can see that we get full receptor occupancy documented at Cmax starting from about the middle of the dose cohort range from, say, cohort five and on and upwards. And you can see that we have that occupancy in monocytes and in neutrophils. We have also shown potent pharmacodynamic effects on IL-one and IL-thirty six, two of the key inflammatory cytokines we aim to block with Canton, both at Cmax on the day of dosing, so the maximum concentration that the drug reaches in the blood. But also, eight days later from that single dose on day one.

And so you see on the right hand side, you see, first of all, the day one results, where you can see a complete aggregation of the activity of IL-thirty six. It can no longer induce IL-six release, which is what we are measuring. And that you see, again, really significantly from dose five onwards, cohort five onwards. And you see at day eight, perhaps even more impressive results that you really see the aggregation starting again from around dose cohort five, but very strongly. And that, I remind you, is from a dose given eight days previously.

So after this successful SAD, we have moved into the MAD part of the study. We are building towards a study in hydrodentitus suppurativa or HS. That’s going to be our initial indication for a Phase II study with Canten. So HS is a severe chronic inflammatory skin disease. As you can see from the pictures on the right hand side of the slide, you can see varying degrees of severity of the disease in those pictures.

Patients get nodules, get scars and eventually they get what are called draining tunnels in the skin, which are very unpleasant and very painful indeed. You can see underneath a graphic of how the different stages affect the skin layer, causing more and more destruction and inflammation. It is a disease with several inflammatory components involved in the pathology. And this is one of the reasons we believe, obviously, that can 10 can be very helpful given that it affects multiple cytokines in the IL-one family. It has an estimated prevalence of zero point seven to one point two percent.

So there are a lot of patients with this disease, even if it’s not particularly well known in the way that, say, atopic dermatitis or psoriasis are. There are current treatments, but they are somewhat inadequate. So up until recently, antibiotics, steroids. Then we have Humira, the anti TNF antibody. Recently, we have antibodies against the cytokine IL-seventeen.

They are Cosentyx and Bimzellix. And with those products, about fifty percent of patients respond in trials, which of course, mean fifty percent don’t. And lots more patients can become refractory to those treatments. So there is a very, very large medical need in this area. And just talking to you about why Pantene is particularly well suited to this indication.

We affect through our interaction with the IL-one wrap, the IL-one accessory protein. We affect the production of or the activity of IL-one alpha and IL-one beta, the IL-one cytokines. But also, IL-thirty three through its ST2 receptor, and also the IL-thirty six receptor complex affecting IL-thirty six alpha, beta and gamma. Why are these important? Because they are associated with different facets of this disease.

The IL-one drives inflammation, IL-thirty three drives itch and IL-thirty six is seen as being quite responsible for the development of the draining tunnels. Interestingly, and very importantly, we have clinical proof of concept for at least the IL1 and the IL36 approach. So there are antibodies in development. One targeting IL-one, which has shown some efficacy in HS. That’s called lutekizumab.

And one targeting IL-thirty six, called basolumab, which has been shown to have effect on the draining tunnels. We know that we block all three of these cytokines. So we’re expecting one treatment to be able to combine the treatment effect of both lutekizumab and spasolumab and add extra efficacy on top of that. So we are going to be moving forward with that program through the year. Now moving to naginalumab.

So for naginalumab, we have published results in PDAC, pancreatic ductal adenocarcinoma, showing a very strong benefit in patients, particularly those who enter the study with a high level of IL-one RAP. And in fact, as well as those patients entering with a high level, it’s also known, it’s been demonstrated that having a high IL-one RAP is a very poor prognostic factor in pancreatic cancer. Because we saw these very interesting results, we have a diagnostic test in development to be able to have a companion diagnostic to nadinolimab that will identify these high L1 RAP patients who benefit particularly well from the treatment with naginalumab. This will enable our continued development in that high L1 RAP subgroup. And during this year, we’re planning for regulatory interactions about the diagnostic test and the further development of naginalumab in pancreatic cancer.

We also reported results from Sestofor and Capafor with positive signals of efficacy in both SCLC, lung cancer, and gastrointestinal cancers. Importantly, we are estimating that we will be able to release the initial results from our first randomized controlled Phase II study of naginalumab, a study called TRIFOR, which is in triple negative breast cancer or TBMC, TNBC. And we expect to release those around mid-twenty twenty five. Also, as we have spoken about previously, we have an acute myeloid leukemia study in the final steps of preparation, a study sponsored by the U. S.

Department of Defense and which will be conducted at the University of Texas MD Anderson Cancer Center. So just to summarize there, overall now we have over three hundred patients treated with adenolumab. And clearly, there are multiple opportunities here to take adenolumab forward and make a significant difference to the treatment of patients with these cancers. Just as a reminder, you have seen this data before, but just as a reminder of the efficacy of naginalumab and PDAC and the differential effect according to IL-one RAP. So you can see here on these two graphics, the one on the left is the overall survival by IL-one RAP subgroup.

And you can see here that we saw a considerably higher survival rate in the IL-one RAP high subgroup. And in fact, the OS and IL1 high RAP group was fourteen point two months versus ten point six months for the IL1 RAP low patients. And that was statistically significant difference. And you can see on the right, what has driven this. You can see the IL-one RAP high group on the left.

You can see where the lines go down. That’s where there’s a response to treatment. And you can see we had many more and larger responses to an adenolumab in the IL-one RAP patients versus the IL-one RAP low. These responses were deeper and more durable, with over eleven patients having a fifty percent or more tumor size reduction. So this really is what drives the interest to move naginalumab forward into the next stage of development in PDAC.

Just finally here, going to say a few words about the milestones we have coming up during twenty twenty four twenty twenty five even, excuse me. So for naginalumab with PDAC, we are developing, as we said, the CDX, we expect to have user regulatory update around Q2. For TNBC, we expect shortly that the recruitment for the TRIFOR study will be completed. And as I mentioned, we will have those initial results in midyear. And we expect reasonably soon to be able to announce the start of the AML study that I spoke about a moment ago.

With Canton, as I mentioned, we will start to bring out the initial MAD results in Q1 and the complete results in Q2. And we’re planning towards the start, hopefully, of a Phase II study in HS towards the end of the year. We also have our CANEXXPRO platform, and we may have new results from that and also all the preclinical and translational results from naginolumab and Canton. So I hope you’ll agree that’s an extensive news flow that we have during 2025. With that, I will hand over to Patrick to talk about the financial results.

Patrick Rheinblad, CFO, Kantagua: Thank you very much, Damian. And I am happy to present to you the why is this not working? There we go. So the financial highlights are here on the screen in front of you as reported this morning. And I’d like to say that we see in general on the cost side a reduction both on R and D expenses and on general and administration, both in the quarter and obviously in the full year numbers.

So that we ended the year with operating expenses of or the quarter, sorry, of 40.7%. That was a total reduction of 43%. And if we look at the full year, our operating expenses were at 168.6%, total reduction of 42%. And then our net reported loss a little bit lower due to positive impact from our net financial items. But so overall, the message that we have been sharing across the year has sort of continued in the quarter and we the reduction of our clinical activity mainly on adenolumab and less production costs than in the previous period, Comparison period is what’s driving this reduction.

Now over to our cash position, we had a net outflow in the quarter of about 26,000,000. We reported available funds of SEK 33,000,000. But I would like to, for the purpose of this call and for answering some questions, I would say that we have virtually 140,000,000 on our available funds. There were 107,000,000 at a issuing institute by the end of the year that we received in early January from the completed rights issue. But obviously, for accounting reasons, we are reporting 33, but virtually 140.

With that, I hand back over to questions and answers.

Damian Maran, CEO, Kantagua: Thanks, Patrick. So thank you all for your attention to this. So as you’ve seen, we do have a number of high potential opportunities here. And I just want to say in my closing remarks here that my focus is absolutely to prioritize and capitalize on these opportunities in the coming months. So I am absolutely dedicated to that on your behalf of shareholders, and I thank you for your support for the company.

With that, we are now available for your questions.

Conference Operator: The next question comes from Richard Romanius from Red Eye. Please go ahead.

Richard Romanius, Analyst, Red Eye: Hello, good afternoon. I have, let’s say, two sets of questions. The first one is about the CEO change and also this type of scenario, I guess, with transaction and business development. So my question is, is the CEO change related to what I see as the need to close at least one transaction with one of your projects, one of your programs, KANTEN or KANO4 in this year? And as a follow-up to that, where do you see the most interest in oncology or immunology?

And how important will the triple negative breast cancer results with Kano4b for potential licensing discussions?

Damian Maran, CEO, Kantagua: Thank you, Richard. I’ll let Magnus say a few words first, and then I will answer the rest of your question. Magnus?

Magnus Persson, Chairman of the Board, Kantagua: Yes, thanks. And thanks for the question. And is it specific was it specifically one item of those you mentioned that the board considered when we decided to change CEO? It was, as I mentioned, it was sort of the energy level and the characteristics that we thought the company needed at this present time. So in a way, the answer is yes, but in a way the answer is also much broader than that.

The organization, the development programs, our outreach to various stakeholders needed a new level of energy, we can say. So that’s and I think maybe Damian, you answered the latter part of the question. Was that a sufficient answer for you?

Richard Romanius, Analyst, Red Eye: Yes, yes. Thank you. Yes, that’s good enough.

Damian Maran, CEO, Kantagua: Yes. So Richard, yes, just to answer the rest of your question. Yes, we are focused on, as I said, capitalizing on the opportunities, which you can take to me in a transaction. There could be many different structures to transactions, which could be very helpful in moving Cantavia forward. Clearly, we have two very interesting lead candidates here, adenolumab, with quite a bit of clinical data now and a strong indication of activity in a PDAC, cancer of very high need.

So obviously, that is an interesting project and we are talking to people about that. And in Canton, we have a project A, which is perfectly by its mechanism of action, perfectly suited to the treatment of a disease like HS, but also many others and immune inflammatory disease, both dermatological and wider. And in the way things go in our industry, immune and inflammatory diseases is a particular focus of both the industry and investors at this time. So although that project is much earlier, there is also the potential to do some transaction around that. So we are exploring all of those and the intention is to drive forward and look to concretize the transaction this year.

Richard Romanius, Analyst, Red Eye: Understand. My next series of questions regard indication HS. I have two questions on that, just to understand a bit better than the market size. You mentioned around 50% to each was anti ALLY seventeen and HUMIRA. Yes.

So what how should we interpret that to mean in terms of total patients that do not respond? Would that be like fifty percent respond to Humira negative fifty percent percent respond to anti IL-seventeen, does that mean about twenty five percent of the market remains? Or I guess it’s more than that?

Damian Maran, CEO, Kantagua: Yes, of course. I mean, that is what how people respond to the products that are currently on the market. And this is the kind of response rate we’re seeing to the anti IL-one and the anti IL-thirty six and currently in clinical development as well. So yes, HS is a very big market and patients who don’t respond to the current drugs or who become refractory, that is a very large part of the market. The treatment of severe patients is particularly underserved.

And severe patients, interestingly, in this disease form over half the population. It’s about sixty percent. But we can also, I would expect to be very effective in patients who have not received any prior biologic treatment. So those are discussions we’ve been having with Key Opinion Leader Outboards and are informing the design of the Phase two study, which we have not divulged at this point. But it is we expect it to be a study that can look at all the subtypes of those patients, if you like.

And so therefore, you know, eventually bring all of those patients into being available for treatment with Canton.

Richard Romanius, Analyst, Red Eye: I think you almost answered my last question. You mentioned Stage three, but would you does that mean you would also enroll stage one patients?

Damian Maran, CEO, Kantagua: Sorry, can you say that again? I just missed what you said. I beg your pardon?

Richard Romanius, Analyst, Red Eye: Would you treat patients in just stage one HS?

Damian Maran, CEO, Kantagua: No, no, not just in stage one. No, no, no, absolutely not.

Richard Romanius, Analyst, Red Eye: I mean stage one through stage three?

Damian Maran, CEO, Kantagua: Potentially, yes. We need to make final decisions I don’t want to preempt. We’re still discussing with KOLs. We again, we’ll have discussions with regulators. But the message I want is to put across is that Canton will not should not be restricted to one particular portion of that patient population.

Obviously, biologic treatments tend to be used in more severe patients. That is a very common aspect of immune and inflammatory diseases across the whole spectrum.

Richard Romanius, Analyst, Red Eye: Okay. Thanks. That’s the answer. All questions I have.

Damian Maran, CEO, Kantagua: Thanks, Richard.

Conference Operator: The next question comes from Luisa Morgato from Von Landshut Kempen. Please go ahead.

Luisa Morgato, Analyst, Von Landshut Kempen: Hi, Tim. Thank you for taking my questions. And of course, congrats, Damian, for the new role. Maybe just to start out, as you mentioned, you will now be a bit more focused in regards to being able to achieve any kind of structure like a transaction this year. Could you elaborate a bit in terms of if anything is changing in the strategy and also prioritizing other in terms of prioritizing stuff in the pipeline?

Damian Maran, CEO, Kantagua: That’s a great question. Thank you very much. I would say that there’s a natural somewhat change in prioritization, not an abrupt change in prioritization. But clearly, as has Canton has entered the clinic, and as I say, it’s a project that is receiving a lot of attention then we naturally are moving towards a balance of priorities around those two projects. Imagine on the map has been our driver for a long time, but Canton is bringing very much a second leg to this.

And again, we will be as we go forward, we’ll be looking very closely at where we allocate our resources to it’s going to be on the opportunities that are going to maximize the value to the stakeholders.

Luisa Morgato, Analyst, Von Landshut Kempen: Thank you. That’s quite clear. And in terms of the AML study, could you elaborate a bit more on the timelines, but also if you already have any, of course, aspects in trial design that you can advance?

Damian Maran, CEO, Kantagua: Not nothing that I can give you right at this moment. But what I can say is we are in the very final stages of preparation. And of course, we will announce once that study is underway and there will be some further details of the study design in that announcement.

Luisa Morgato, Analyst, Von Landshut Kempen: Okay. Thank you. And maybe just one final question, maybe for Patrick. What can we expect in terms of expenses for this year? Will the level be maintained?

Or will we see, of course, an increase with the Phase II start with Canton? And, of course, also dependent on TEN4 eventually potentially starting?

Patrick Rheinblad, CFO, Kantagua: Yes. No, I think we should our guidance on runway is to the towards the end of the year or early twenty twenty six if we stretch it. But that is excluding any start of clinical studies such start well, of the two you mentioned, not the AML that’s starting anyway. But starting Phase II in HS or a or the next study clinical study with nadinolimab in PDAC would require that we have that we’ve executed on a transaction as Damian has mentioned. But excluding that, the runway is towards the end of the year or early twenty twenty six.

Luisa Morgato, Analyst, Von Landshut Kempen: Okay. That’s quite helpful.

Patrick Rheinblad, CFO, Kantagua: Was that clear, Luisa? Yeah?

Luisa Morgato, Analyst, Von Landshut Kempen: Yeah. Yeah. Quite helpful. Thank you so much. Yeah.

Patrick Rheinblad, CFO, Kantagua: Thank you.

Conference Operator: There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.

Moderator/Question Handler: There’s a couple of written questions. The first one being, you spoke in the introduction about your backgrounds in the venture business. How will you leverage that to create value for CantarGA?

Damian Maran, CEO, Kantagua: Magnus, I think that’s one for you.

Magnus Persson, Chairman of the Board, Kantagua: Is that a question for me, Magnus? You think?

Damian Maran, CEO, Kantagua: You have the venture background, Magnus.

Magnus Persson, Chairman of the Board, Kantagua: I have the I mean, I’ve been having worked in the sort of financial side of life science entrepreneurship, I have brought several companies from sort of lab environment to a public environment and on to acquisitions by pharma or bigger biotechs. So I think I have a pretty good sense of sort of value building, building organizations in this sector and identifying and prioritizing between programs and sort of being prudent on the budgeting side because, you know, having being a financier myself. So I think many years of developing medicinal products is a good starting point and I’ve been sharing private and public companies, both here in Sweden, in many jurisdictions in Europe and in The U. S. As well.

So pretty decent sort of roster of experience that I think can become can be handy to Kantarja, of course. And ultimately, it’s the nomination committee and the Annual General Meeting who decides who sits on the Board and who chairs it. So it’s not my decision. I’m elected.

Moderator/Question Handler: Thank you. And the next question is regarding the AML study. Do you see any risk of that being affected by the new administration in The U. S?

Damian Maran, CEO, Kantagua: Thank you. That’s an excellent question. Unfortunately, I think I have no more visibility into the decisions of the administration in The U. S. Than many much more educated commentators and I on that sort of subject.

You know, we can only work with what we know. And at the moment, we have had no news to the contrary. We are to say, we are in touch with the University of Texas MD Anderson Center. And for the moment, the study is moving forward. That’s all I can say.

Moderator/Question Handler: Thank you. And could you clarify the plans and the outlook for nadumilab in PDAC in during the next or during this year?

Damian Maran, CEO, Kantagua: Yes. Of course, yes, certainly. The main activity focus during this year is actually the development of the companion diagnostic that will allow us to be able to identify those higher lung rack patients with the poor prognosis, but who actually respond better to the treatment than the patients with the better prognosis, but the low higher one RAP level when they enter the study. So that is a step we have to go through before we can start the next clinical study focused on the high IL1 RAP group. Of course, in parallel, we may look at preparations, making sure we have the drug ready.

And of course, most importantly, that we have the clinical design hammered out. We are discussing we as I said earlier, we’ll discuss with regulators that will be about both the study design and about the companion diagnostic. But that is going to be the main focus as we move forward through 2025.

Moderator/Question Handler: Thank you. And the Swedish APIF fund, AP4, has announced that they have been selling shares in the company. Do you have any insights on what is happening from their side?

Damian Maran, CEO, Kantagua: I do, but I think probably best place to explain the circumstances of that is Patrick.

Patrick Rheinblad, CFO, Kantagua: Yes. Thank you. And, yes, we usually we don’t comment on changes of shareholdings or the share price. But in this case, we will make an exception. AP4 remains our biggest shareholder.

AP4 held 9.9% of the votes and the shares in the company before the rights issue. And they will hold 9.9% of the shares after the issue as of today. There was a technical for a technical reason, they ended up above the threshold of 10% and therefore had to announce that both as a flagging, both when they went up and when that was then corrected subsequently. So I understand the question and it’s resolved, and that is my our answer to that question.

Moderator/Question Handler: Thank you. That were all the questions coming in from the web.

Damian Maran, CEO, Kantagua: Thank you, Al. Thank you, Magnus. Thank you, Patrick. Thank you for all the shareholders and our analysts who attended the call and asked such good questions. Thanks to our shareholders for your continued support.

And as I’ve said a couple of times already on this call, be assured that my focus is on creating greater stakeholder value and accelerating the creation of that value. And I look forward to communicating with you as we move through 2025. Thank you very much, everybody.

Magnus Persson, Chairman of the Board, Kantagua: Thank you.

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