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Regulated information
Bone Therapeutics secures EUR 11.0 million financing
Gosselies, Belgium, 29 April 2020, 7am CET – BONE THERAPEUTICS (Euronext Brussels and Paris: BOTHE), the bone cell therapy company addressing high unmet medical needs in orthopaedics and bone diseases, today announces that it secured EUR 11.0 million financing. The financing will be used to advance both of its key assets, ALLOB and JTA-004, through late stage clinical development. The financing operation consists of EUR 4.75 million bridge loans, EUR 1,26 million in equity private placement (immediate conversion of CBs) by existing shareholders and, on an as-needed basis, a EUR 4.99 million in private placement of convertible bonds (CBs). The bridge loans are still subject to obtaining a credit assurance, which is pending regulatory approvals expected in May 2020.
“This current financing will allow us to continue the strong progress of the late stage development of our innovative treatment solutions. It will additionally provide support for our wider activity during the measures taken by international governments to combat the global COVID-19 pandemic,” said Miguel Forte, MD, PhD, Chief Executive Officer of Bone Therapeutics. “This support results from the potential of our allogeneic cell therapy platform and enriched protein solution to transform the lives of patients with debilitating bone conditions. We will continue our preparations for when the sites selected for the approved clinical studies with ALLOB and JTA-004 can resume their normal operations on a country per country basis.”
“We are delighted by the continued support we have received from our current and reference shareholders, including SFPI and S.R.I.W. Their commitment is instrumental for the development of our innovative products,” said Jean-Luc Vandebroek, Chief Financial Officer of Bone Therapeutics. “The present fundraise allows us to retrieve funds on an as-needed basis rather than an immediate important dilution of a traditional share issuance. Conforming to our financing strategy, we will continue to explore funding options to further strengthen our cash position and to ensure a successful completion of the upcoming clinical trials.”
Subject to the completion of the current financing operation, supporting the company’s further development and strengthen its balance sheet, Bone Therapeutics expects to have a runway into Q1 2021. The secured 11.0 million financing combines:
- EUR 4.75 million bridge loans provided by commercial banks and Sambrinvest, conditional upon obtaining a credit assurance which is pending regulatory approvals expected in May;
- EUR 1.26 million equity by existing shareholders and;
- Flexible(1) EUR 4.99 million of convertible bonds to be used if and when necessary.
Bone Therapeutics intends to pursue a capital raise when favorable market conditions are met. Existing shareholders have already taken a pre-commitment to participate.
The specific terms of the CBs can be found in the Investor section of Bone Therapeutics’ website.
(1) The Company may at any time stop the program without penalty.
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