Karolinska Development’s portfolio company SVF Vaccines and Novakand Pharma enters into a reverse acquisition agreement

Core Viewpoint - Karolinska Development AB's portfolio company SVF Vaccines has entered into a reverse acquisition agreement with Novakand Pharma, valued at approximately SEK 55 million, pending various approvals [1][3]. Group 1: Transaction Details - The reverse acquisition agreement allows Novakand to acquire all shares in SVF Vaccines, with payment made in newly issued shares of Novakand [1]. - SVF Vaccines shareholders will hold 66.7% of the combined company, while Novakand shareholders will hold 33.3% [3]. - The transaction is expected to be completed in the first quarter of 2026, subject to approval from an extraordinary general meeting of Novakand and regulatory authorities [1][3]. Group 2: Company Focus and Financials - Post-transaction, the combined company will concentrate on developing innovative vaccine therapies based on SVF's technology, while retaining Novakand's existing fractalkine program [4]. - The combined entity is projected to have sufficient working capital for the next 12 months, with plans for a capital raise to fund a Phase 1 study for the vaccine candidate SVF-001, estimated to cost SEK 30 million [4]. Group 3: Strategic Importance - The CEO of Karolinska Development emphasized that the stock market listing could accelerate SVF Vaccines' vaccine development, highlighting the company's commitment to supporting the capital raising process for the upcoming Phase 1 study [5]. - Karolinska Development holds a 33% ownership stake in SVF Vaccines, indicating a significant interest in the success of the combined entity [5].