Oasmia Pharmaceutical AB (NASDAQ:OASM) shares surged over 63% Friday after the company announced that an agreement has been reached with its largest shareholder Arwidsro to solve its outstanding balances. Arwidsro increased its investment in Oasmia.
Oasmia Pharmaceutical is a Sweden-based company that develops and manufactures new generations of drugs. It specifically caters to the fields of human and veterinary oncology.
There are several sides to the agreement, but essentially, Oasmia has agreed on the early fulfillment of Arwidsro’s financing obligation of SEK 75 million. This fulfillment was issued in January of last year; it was intended to resolve balance sheet issues.
An important takeaway, however, is that these tractions will cause Oasmia’s liabilities to decrease by SEK 60 million; equity will increase by SEK 95 million.
"It feels good to straighten out some historical question marks and close further parts of our review by fulfilling past agreements," said Jörgen Olsson.
"In addition, getting SEK 20 million to reduce our debt burden is very positive."
Chairman of Arwidsro, Per Arwidsson, seems to agree with Olsson, saying it’s been a long journey, but it’s "led to something very positive."
Shares vaulted 55 cents, or 27.4%, to $2.56
