Mereo BioPharma Group plc £10m credit facility drawdown & issue of warrants (6367A)
02 January 2018 - 6:00PM
UK Regulatory
TIDMMPH
RNS Number : 6367A
Mereo BioPharma Group plc
02 January 2018
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
THE
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN
Mereo BioPharma Group plc
("Mereo" or the "Company" or the "Group")
GBP10 million credit facility drawdown and issue of warrants
Second and final tranche of credit facility drawn
London, January 2, 2018 - Mereo BioPharma Group plc (AIM: MPH),
a multi-asset biopharmaceutical company focused on the acquisition,
development and commercialisation of innovative therapeutics that
aim to improve outcomes for patients with rare and specialty
diseases, is pleased to announce that on December 29, 2017 it drew
down the second and final GBP10 million tranche of the credit
facility set up in August 2017 with Silicon Valley Bank and Kreos
Capital (the "lenders").
With its existing cash position, together with this drawdown of
the remainder of its credit facility, Mereo has a strong balance
sheet with sufficient cash resources to fund its key clinical
programmes.
The terms are as previously disclosed and are typical for
facilities of this type and include an interest only period to
September 30, 2018, a thirty-month capital and interest repayment
period thereafter, a competitive high single digit headline
interest rate and customary security over assets of the Group.
In connection with the drawdown, on December 29, 2017 the
Company issued warrants giving the lenders the right to subscribe
for 333,334 shares at a price of 330 pence per share, currently
equivalent to approximately 0.5% of the issued share capital of the
Company. These warrants will be capable of exercise until August
21, 2027.
Ends
For Further Enquiries:
Mereo BioPharma Group plc +44 (0)333 023 7319
Denise Scots-Knight, Chief
Executive Officer
Richard Jones, Chief Financial
Officer
Nominated Adviser and Joint
Broker
Cantor Fitzgerald Europe +44 (0)20 7894 7000
Phil Davies
Will Goode
Joint Broker
RBC Capital Markets +44 (0)20 7653 4000
Rupert Walford
Laura White
Public Relations Adviser to
Mereo
FTI Consulting +44 (0)20 3727 1000
Ben Atwell
Simon Conway
Brett Pollard
US Public Relations Advisor
to Mereo +01 (0) 212 213
Burns McClellan 0006
Lisa Burns
Steven Klass
About Mereo
Mereo is a multi-asset biopharmaceutical company focused on the
acquisition, development and commercialization of innovative
therapeutics that aim to improve outcomes for patients with rare
and specialty diseases. The portfolio consists of four
clinical-stage product candidates, each of which were acquired from
large pharmaceutical companies: BPS-804 for the treatment of
osteogenesis imperfecta, or OI; AZD-9668 for the treatment of
severe alpha-1 antitrypsin deficiency, or AATD; BGS-649 for the
treatment of hypogonadotropic hypogonadism, or HH, in obese men;
and BCT-197 for the treatment of acute exacerbations of chronic
obstructive pulmonary disease, or AECOPD. Each of the Company's
product candidates has generated positive clinical data for the
target indication or in a related disease. The Company's strategy
is to selectively acquire product candidates that have already
received significant investment from pharmaceutical companies and
that have substantial preclinical, clinical and manufacturing data
packages. Since inception the Company has commenced large,
randomized, placebo-controlled Phase 2 clinical trials for three of
the product candidates and announced positive top-line results from
its Phase 2 clinical trial of BCT-197 as an acute therapy for
patients with acute exacerbations of chronic obstructive pulmonary
disease in December 2017. The Company intends to commence
additional late-stage clinical trials in 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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