Pharnext Announces €20.5 Million Bond Loan
June 13 2018 - 12:05PM
Business Wire
- Supports research and development
through the end of 2019
- Pharnext has raised over €36.5
million since April 2018
Regulatory News:
Pharnext SA (Paris:ALPHA) (FR0011191287 - ALPHA),
a biopharmaceutical company pioneering a new approach to the
development of innovative drug combinations based on big data
genomics and artificial intelligence, today announced a financing
of up to €20 million through a bond loan with IPF Partners, one of
the top providers of alternative financings in the healthcare
sector.
“This financing with IPF Partners, in combination with the
private placement announced earlier this year, strengthens our
financial position and enables us to continue advancing the
clinical development and commercial preparation for our innovative
drug combinations,” said Prof. Daniel Cohen, M.D., Ph.D.,
Co-Founder and Chief Executive Officer of Pharnext. “We are
grateful for the continued support from our shareholders and
financial partners, and we look forward to reporting top-line
results from our Phase 3 trial of PXT3003 in Charcot-Marie-Tooth
disease type 1A later this year.”
The financing consists of three tranches of bonds with an annual
interest rate of EURIBOR+11%. The first tranche of €11.5 million
will be issued on June 30, 2018 at the latest, the second tranche
of €3.5 million will be issued on July 30, 2018 at the latest and
the third tranche of €5 million could be issued at Pharnext’s will
and following top-line results from Pharnext’s ongoing pivotal
Phase 3 trial of PXT3003, its lead drug candidate for the treatment
of Charcot-Marie-Tooth disease type 1A (CMT1A), expected in the
second half of 2018.
Additionaly, a line of convertible bonds will be also issued
with Yorkville Advidors for up to €0.5 million in convertible
securities, with a maturity date of one year following their date
of issue.
The transaction closed today concludes a series of successive
financings for Pharnext which began in April 2018, for total
proceeds of €36.5 million.
CHARACTERISTICS OF THE PRIVATE PLACEMENT
IPF Partners. The bonds have been issued in accordance
with the approval of the Board of Directors implemented according
to the Eighth Resolution of the Shareholders’ Meeting of June 28,
2017 (the “Shareholders’ Meeting”), without pre-emptive
subscription rights, to the company IPF Fund I SCA, SICAV FIS et
IPF Fund II SCA.
A total of 20,000,000 bonds could be issued via private
placement, with a price of each equal to €1, and each comprising an
ordinary warrant (“Warrant”). Warrants entitle to subscribe a total
of 574.372 ordinary shares for the two firsts tranches and 53.968
ordinary shares for the third tranche. Such total of new shares
will be entirely assimilated into existing Pharnext shares with an
exercise price equal to the volume-weighted average price of an
ordinary share of Pharnext on Euronext Paris for the last three
days prior to the date of issuance of each tranche minus a five (5)
percent discount and will represent approximately 4.81% of the
number of outstanding shares in the event of their exercise by IPF.
The Warrants may be exercised until July 31, 2026.
YorkVille. Convertible Bonds (“CB”) has been
issued in accordance with the approval of the Board of Directors
implemented according to the Eighth Resolution of the Shareholders’
Meeting, without pre-emptive subscription rights, to YA II PN, LTD,
an investment funds managed by a portfolio management company
Yorkville Advisors Global, LP. A total of 50 CB will be issued,
each with a par value of €10,000, representing a total aggregate
nominal amount of €500,000 and will be subscribed at 98% of par.
The convertible bonds have a maturity of 12 months from their date
of issue. The CB holder may convert all or any of the CB into a
number of ordinary shares equal to the corresponding aggregate
principal amount divided by 92% of the lowest daily volume weighted
average price over the 10 trading days prior to each conversion
date. The CB will not be listed or admitted for trading on the
Euronext Growth Paris market. Trading Days during which the CB
holder has sold any share of Pharnext in the market will be
excluded from the 10 trading days preceding the Conversion
Date.
Pursuant to Article 211-3 of the AMF (Autorité des Marchés
Financiers) General Regulations, it should be noted that neither of
the above-mentioned issues has resulted or will result in the
drafting of a prospectus submitted to the AMF for approval.
About PharnextPharnext is an advanced clinical-stage
biopharmaceutical company developing novel therapeutics for orphan
and common neurodegenerative diseases that currently lack curative
and/or disease-modifying treatments. Pharnext has two lead products
in clinical development. PXT3003 is currently in an international
Phase 3 trial for the treatment of Charcot-Marie-Tooth disease type
1A and benefits from orphan drug status in Europe and the United
States. The results of this trial are expected in the second half
of 2018. PXT864 has generated positive Phase 2 results in
Alzheimer’s disease. Pharnext has developed a new drug discovery
paradigm based on big genomic data and artificial intelligence:
PLEOTHERAPY™. The Company identifies and develops synergic
combinations of drugs called PLEODRUG™ offering several key
advantages: efficacy, safety and robust intellectual property. The
Company was founded by renowned scientists and entrepreneurs
including Professor Daniel Cohen, a pioneer in modern genomics and
is supported by a world-class scientific team.
Pharnext is listed on Euronext Growth Stock Exchange in Paris
(ISIN code: FR0011191287).For more information, visit
http://www.pharnext.com/
IPF PartnersIPF Partners is a leading alternative
financing provider focused on the healthcare sector with over €200m
under management. IPF invests directly in emerging pharma/biotech,
medtech and diagnostics companies. Founded in 2011 by a seasoned
multi-disciplinary team combining over fifty years of finance and
investment and over thirty years of healthcare experience, IPF is
providing bespoke, long-term financing.
For more information visit www.ipfpartners.com.
DisclaimerThis press release has been issued to fulfil
Pharnext's permanent reporting obligations. It does not constitute
a public offering, subscription offering or a solicitation in view
of a public offering.
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PharnextFrançois Chamoun, +33 (0)1 41 09 22 30Legal
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Relations (U.S.)RooneyPartnersKate L. Barrette, +1 212 223
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