STOCKHOLM, March 23, 2020 /PRNewswire/ --Moberg Pharma AB
(publ) announces today that the company has entered into a
convertible note agreement with Nice & Green S.A. ("N&G"),
contingent on an authorization at an Extraordinary General Meeting.
In December 2019, the company
reported that the primary endpoint for MOB-015 was met in the North
American phase 3 study. The evaluation of the study results showed
that the rapid and high antifungal effect of MOB-015 is world
leading, but that dosing may be optimized. Based on these data,
MOB-015 has the potential to become the future market leader in
onychomycosis. The agreement with N&G enables Moberg Pharma to
pursue this potential and conduct an additional clinical study,
depending on the outcome of the EU study expected at the end of Q2
2020.
The financing is provided by N&G, a Swiss specialty investor
focusing on financing solutions for public biotech and cleantech
growth companies. According to the financing agreement, N&G has
committed to subscribe for convertible notes (CN) with a nominal
value of up to SEK 216 million, in
tranches of initially SEK 3 million
per month for the first six months and thereafter, depending on
market conditions, with possibility to increase to SEK 6 million per month. Each tranche is
subscribed at 96.28 percent of the CNs' nominal value. 75% of the
amount will be paid in US dollar and the remaining 25% in Swedish
kronor. Moberg Pharma has committed to draw the first two tranches
and can then decide if and when the remaining tranches will be
drawn. The company's commitment is contingent on an Extraordinary
General Meeting of Moberg Pharma authorizing the Board of Directors
to decide to issue CNs pursuant the agreement. The company retains
flexibility to use other forms of financing.
"This financing can cover the company's capital requirements
to product registration following a positive outcome in the
European phase 3 study. It can also secure financing for an
additional study if needed before registration. We are continuing
our focus on MOB-015 and look forward to the topline data from the
EU study at the end of the second quarter. We are fully committed
to creating the future market leader in nail fungus
treatments," says Anna Ljung,
CEO of Moberg Pharma.
The CNs will have a maturity of twelve months, zero interest
rate and will be unsecured and non-transferable. The CNs can be
converted to shares at a 7 percent discount in relation to the
shares' market price at the time of N&G's conversion request.
Moberg Pharma has the option to instead redeem the CNs in cash for
a 3 percent fee of the nominal amount. New shares issued upon
conversion will have the same rights as other ordinary shares and
will be admitted to trading on Nasdaq Stockholm under the ticker
symbol MOB.
The agreement with N&G also contains a profit sharing
program, consisting of cash compensation to Moberg Pharma in the
form of a percentage of the realized net capital gain on N&G's
sale of shares issued after conversion of the CNs, which reduces
Moberg Pharma's total cost for the financing.
"The agreement provides Moberg Pharma access to flexible
financing at a reasonable cost under current market conditions. As
part of the agreement, Nice & Green will introduce Moberg
Pharma to its wide network of biotech investors in Switzerland, Germany and France," says Mark
Beveridge, VP Finance at Moberg Pharma.
To facilitate the financing agreement, the company's largest
shareholder, Östersjöstiftelsen, has entered into an agreement to
lend N&G shares in Moberg Pharma. The share loan is
collateralized by the CNs and by assets in Moberg Pharma. Moberg
Pharma will pay a market-aligned fee to Östersjöstiftelsen for
providing the share loan.
CONTACT:
For additional information, please contact:
Anna Ljung, CEO, Phone: + 46
70 766 60 30, email: anna.ljung@mobergpharma.se
Mark Beveridge, VP Finance, Phone: +
46 76 805 82 88, email: mark.beveridge@mobergpharma.se
About this information
This is information that Moberg Pharma AB (publ) is obliged to make
public pursuant to the EU Market Abuse Regulation (MAR). The
information was submitted for publication, through the contact
persons set out above at 9.00 p.m.
CET on March 23rd, 2020.
This information was brought to you by Cision
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The following files are available for download:
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Moberg Pharma enters
financing agreement of up to SEK 216 million for further
investments in MOB-015
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SOURCE Moberg Pharma