THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE EU REGULATION 596/2014 ("MAR") AND ARTICLE 7 OF
MAR AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK
MAR")
Faron Pharmaceuticals
Ltd
("Faron"
or the "Company")
Company announcement, February 19, 2024 at 10:30 a.m. GMT /
12:30 p.m. EET
Inside information: the Company is in Events of
Default under the terms of the Funding Agreement between IPF Fund
II SCA, SICAV-FIAR and Faron Pharmaceuticals Ltd
TURKU, FINLAND / BOSTON, MA -
Faron Pharmaceuticals Ltd (First North: FARON, AIM:
FARN), a clinical stage biopharmaceutical
company pioneering macrophage
reprogramming for effective anticancer
immunotherapies, today announces that it is in breach of several undertakings
agreed in the secured debt agreement dated February 28, 2022
between IPF Fund II SCA, SICAV-FIAR ("IPF") as Lender and Faron
Pharmaceuticals Ltd as Borrower ("Funding Agreement") and
subsequent waiver letters provided by IPF, and is therefore in
several Events of Default, as defined in the Funding
Agreement.
Faron's bank accounts are pledged to
IPF and IPF has notified Faron's banks of the blocking of the
Pledged Accounts due to the above mentioned breaches. The
Company presently does not have ability to remedy the breaches, nor
make payments to third parties without separate consent from IPF.
Negotiations related to possible restructuring of the loan
facility as well as waiver of covenant obligations are ongoing with
IPF. A further announcement will be made in due
course.
The total cash and cash equivalents
held by the Company is currently ca. EUR 4.3 million, which are
enough to cover the company's financing needs until the beginning
of April, 2024.
For
more information please contact:
Investor Contact,
US
LifeSci Advisors
Daniel Ferry
Managing Director
daniel@lifesciadvisors.com
+1 (617) 430-7576
Investor Contact, EUR
Faron Pharmaceuticals
Yrjö E K Wichmann
SVP, Funding & Investor
Relations
yrjo.wichmann@faron.com
investor.relations@faron.com
Phone: +358 (0) 40 5868
979
Cairn Financial Advisers LLP, Nomad
Sandy Jamieson, Jo Turner
Phone: +44 (0) 207 213
0880
Sisu Partners Oy, Certified Adviser on Nasdaq First
North
Juha Karttunen
Phone: +358 (0)40 555
4727
Jukka Järvelä
Phone: +358 (0)50 553
8990
ICR
Consilium
Mary-Jane Elliott, David Daley,
Lindsey Neville
faron@consilium-comms.com
Phone: +44 (0)20 3709
5700
About Faron Pharmaceuticals Ltd.
Faron (AIM: FARN, First North:
FARON) is a global, clinical-stage biopharmaceutical company,
focused on tackling cancers via novel immunotherapies. Its mission
is to bring the promise of immunotherapy to a broader population by
uncovering novel ways to control and harness the power of the
immune system. The Company's lead asset is bexmarilimab, a novel anti-Clever-1
humanized antibody, with the potential to remove immunosuppression
of cancers through targeting myeloid cell
function. Bexmarilimab is being
investigated in Phase I/II clinical trials as a potential therapy
for patients with hematological cancers in combination with other
standard treatments. Further information is available
at www.faron.com.
Forward-looking statements
Certain statements in
this announcement are, or may be deemed to be,
forward-looking statements. Forward-looking statements are
identified by their use of terms and phrases such as ''believe'',
''could'', "should", "expect", ''envisage'', ''estimate'',
''intend'', ''may'', ''plan'', ''potentially'', ''will'' or the
negative of those, variations or comparable expressions, including
references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current
expectations and assumptions regarding the Company's future growth,
results of operations, performance, future capital and other
expenditures (including the amount, nature and sources of funding
thereof), competitive advantages, business prospects and
opportunities. Such forward-looking statements reflect the
Directors' current beliefs and assumptions and are based on
information currently available to the Directors.
A number of factors could cause
actual results to differ materially from the results and
expectations discussed in the forward-looking statements, many of
which are beyond the control of the Company. In addition, other
factors which could cause actual results to differ materially
include the ability of the Company to successfully licence its
programmes, risks associated with vulnerability to general economic
and business conditions, competition, environmental and other
regulatory changes, actions by governmental authorities, the
availability of capital markets or other sources of funding,
reliance on key personnel, uninsured and underinsured losses and
other factors. Although any forward-looking statements contained in
this announcement are based upon what the Directors believe to be
reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with such forward-looking
statements. Accordingly, readers are cautioned not to place undue
reliance on forward-looking statements. Subject to any continuing
obligations under applicable law or any relevant AIM Rule
requirements, in providing this information the Company does not
undertake any obligation to publicly update or revise any of the
forward-looking statements or to advise of any change in events,
conditions or circumstances on which any such statement is
based.