Redx Pharma plc - Proposed financing of $30m and notice of GM
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN
For immediate release
("Redx" or "the Company" or "the Group")
Proposed financing of
Funds will be used to progress pipeline to key value inflection points
The Company is today separately announcing its Interim Results for the six months to
This financing follows the recent successful close of a mandatory offer for Redx by
The Loan and share subscription are subject to the Company obtaining shareholder approval to issue the requisite number of new ordinary shares, to increase the Company's borrowing limits and to disapply pre-emption rights. A circular is being sent to shareholders today to convene a General Meeting at which these approvals will be sought and which will be held at
As Redmile, prior to the transaction, hold 92.02 per cent. of the Company's issued ordinary shares, the Loan from, and issue of loan notes to, Redmile constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules. The Board consider that the terms of the Loan from, and issue of loan notes to, Redmile are fair and reasonable insofar as the Company's shareholders are concerned, having consulted with
The principal terms of the Loan are as follows:
· The Loan is secured by fixed and floating charges over all assets of the Group and its subsidiaries, with the exception of the RXC006, GI-Targeted ROCK and certain early stage research programmes.
· The Loan (together with all unpaid interest) is repayable in full on the third anniversary of the initial notes issue (the "Initial Maturity Date"), but may become payable earlier in the event, inter alia, of default by the Group. If the Loan remains outstanding on the Initial Maturity Date, the Lenders can extend the maturity date to the fourth anniversary of the initial notes issue and can, prior to each new maturity date, further extend the maturity date to the next anniversary of the initial notes issue. Any maturity date beyond the tenth anniversary of the initial notes issue requires the consent of the Company.
· The Company cannot repay the Loan early.
· Interest is payable at zero per cent. per annum from the date of signing, up until the Initial Maturity Date and thereafter at a rate no higher than the US prime rate.
· Each Lender has the right, at any time, to convert all of part of its Loan into new ordinary shares in the Company at a conversion price per ordinary share of 15.5p.
· Customary positive and negative covenants, representations and warranties have been provided to the Lenders upon signing of agreements for the Loan.
As part of the terms of the Subscription, it has been agreed that, upon completion of the issue of the loan notes,
For further information, please contact:
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T: +44 1625 469 918
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T: +44 203 368 3550
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T: +44 20 3705 9330
T: +44 20 3727 1000
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Redx is a
This information is provided by RNS, the news service of the
Quick facts: Redx Pharma PLC
Market Cap: £87.86 m
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