Prominent investors such as Stein Erik Hagen and the Sundt family are dumping stocks after the crash. On the other hand, the CEO says that largest shareholder Gjelsten Holding “has no plans to sell now.”
A number of well-known investors have plunged into Ultimovacs shares after the price fell more than 90 percent on news of the company's failed cancer study.
In the wake of the price collapse, many major shareholders sold significant stakes.
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It's still down 100 percent for Ultimovacs
However, the majority owner has no plans for that.
-We chose to stay. We still believe there is something here and therefore we have no plans to sell now, CEO Henrik Schüssler of Gjelsten Holding tells E24.
Investors are dumping stocks
Investor Bjørn Rune Gjelsten, through his company Gjelsten Holding, is the largest holder in Ultimovacs with an 18.9 percent stake.
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At the top of the list, several are now sold out:
- Stein Erik Hagen and the family's investment company Canica sold 1 million shares and have 1.7 million left.
- Investment firm Watrium, controlled by shipping heir Anders CG Wilhelmsen and his family, has sold all of its 1.78 million shares.
- CGS Holding as Helene Sundt and Sundt sold approximately 2.23 million shares. The companies have a total of 420,000 shares remaining.
- Board member Ketil Fjerdingen sold 596,006 shares.
– To have confidence in the company
Schussler is also a member of the Board of Directors of Ultimovacs.
– Now we have to get some time to determine our direction and then we will see what the potential is. We will discuss this in the Council after the administration conducts its analyzes and evaluations. The Council will then make its decisions based on that.
-Are you ready to support the company as a major shareholder?
– The company has funds until 2024. We will look at how to extend the use of funds beyond 2024. By then we will have received new readings. We believe in the company as long as there is hope of getting new studies that give a different result, plus we get updated data from the NIPU study.
Ultimovacs had NOK 267 million in cash at the end of last year.
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Schussler still expresses confidence in the candidate vaccine despite not reaching the so-called end point in the study.
This was the second of five studies in the so-called Phase II program. The other three studies are ongoing.
Schuessler indicates that more results are expected to be achieved during the year.
-We are cautiously optimistic and want to support the company until we get more information.
Ultimovacs board members Leiv Askvig and Haakon Stenrød, associated with Sundt and Watrium respectively, have no comments on this matter.
Stock collapse
Ultimovacs announced Thursday that a major cancer study using its UV1 vaccine candidate fell short of the goal of extending survival for the patient group.
This news sparked a collapse in stocks. On Thursday, the rate fell by 93 percent and will fall another 16 percent on Friday morning.
According to Schussler, the board of directors was informed of the results of the study on Wednesday evening at a board meeting, before sending the stock exchange announcement on Thursday morning before the stock market opened.
Ultimovacs is developing a cancer vaccine based on research it is conducting at Radiumhospitalet in Oslo. In cancer treatment, drugs are called vaccines because they stimulate the immune system to attack the cancer.
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