Kiadis Pharma secures €20 million debt financing facility from Kreos Capital
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August 01, 2018 01:00 ET | Source: Kiadis Pharma N.V.
Kiadis Pharma secures €20 million debt financing facility from Kreos Capital
Amsterdam, The Netherlands, August 1, 2018 - Kiadis Pharma N.V. ("Kiadis Pharma" or the "Company") (Euronext Amsterdam and Brussels: KDS), a clinical stage biopharmaceutical company developing a T-cell immunotherapy product candidate designed to reduce Graft versus Host Disease (GVHD) and relapse after hematopoietic stem cell transplantations (HSCT), today announces that it has received a new debt facility from Kreos Capital providing the Company with up to €20 million of additional financing. This is in addition to the Company's €15 million debt financing from Kreos Capital in 2017.
The new loan consists of two tranches, with the first tranche of €5 million being immediately drawn down and a second tranche of up to an additional aggregate amount of €15 million, which Kiadis Pharma can at its option draw down until March 31, 2019, conditional on the Company having received a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency for the Company's T-cell product candidate ATIR101. Kiadis Pharma will use funds drawn down under the debt facility to advance the Phase 3 clinical development of ATIR101, to prepare for a possible commercial launch in Europe and for general corporate purposes. If drawn down in full, this new €20 million debt facility would extend the Company's cash runway into the first quarter of 2020.
Arthur Lahr, CEO of Kiadis Pharma, commented: "This additional agreement with Kreos Capital gives us the option to comfortably extend our cash runway into the first quarter of 2020, with limited dilution, once we have received the anticipated opinion from the CHMP in the fourth quarter of 2018."
Maurizio PetitBon, General Partner of Kreos Capital, commented: "Kiadis Pharma is advancing treatment in the field of allogeneic hematopoietic stem cell transplantations and has the potential to improve the outcomes of patients suffering from blood cancers. We are proud to extend our relationship with Kiadis Pharma as they enter the next phase to further drive the development of ATIR101."
About the loan agreement
Draw down Tranche A: €5 million upon closing
Tranche B: loans of up to an aggregate additional amount of €15 million may be drawn down at the option of the Company prior to March 31, 2019, conditional on the Company receiving a positive opinion for ATIR101 from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency
Term Tranche A: 45 months
Tranche B: 48 months
Repayment Tranche A: Interest only for the first 9 months, with the remaining 36 months amortizing in equal monthly instalments comprising principal and interest
Tranche B: Interest only for the first 12 months, with the remaining 36 months amortizing in equal monthly instalments comprising principal and interest
Interest 9% annual fixed interest rate
End of loan payment 5% of the amount drawn down
Structure Security over assets including IP; no financial covenants
Warrants In connection with the drawdown of Tranche A, at closing the Company granted 41,212 warrants giving Kreos Capital the right to subscribe for 41,212 new Company shares at a price of €9.71 per share
In connection with any potential drawdowns under Tranche B, Kreos Capital is entitled to receive warrants to purchase new Company shares worth 8% of the amounts drawn down under Tranche B, with the exercise price being the average 10-day closing share price prior to the date the Company delivers a drawdown request to Kreos Capital
The warrants can be exercised over a 5-year period after grant
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