Synact Pharma AB (“Synact”) hereby announces that the company has secured bridge loan financing of approximately SEK 10 million from Formue Nord A/S and two additional partners in order to maintain momentum and maintain a high tempo in the development operations regarding the candidate drug AP1189. Through the bridge loan financing, SynAct has secured capital for part of the second part of the broader Phase II study with AP1189, i.e. the part of the study the company initially has a need to finance. Through this funding, the board’s assessment is that the company can achieve several value-added activities before more long-term financing is implemented. The estimated capital requirement to carry out the second part of the Phase II study is approximately SEK 20 million. In connection with securing the bridge loan financing, the majority shareholders entered into lockup agreements for 12 months.
SynAct, in accordance with previous communication, has chosen to extend the Phase II study to two parts in order to improve the ability to demonstrate the full potential of the candidate drug. The first part focusses on safety and tolerability in patients and will also provide an initial indication of effective dose intervals. The second part will focus on studying the effect of AP1189 on the relevant disease parameters. Synact’s available financial resources are sufficient to fund the first part of the Phase II study. The estimated capital requirement to carry out the second part of the Phase II study is approximately SEK 20 million.
SynAct has now ensured bridge loan financing from Formue Nord A/S, Råsunda förvaltning AB and Gerhard Dal of approximately SEK 10 million for part of the second part of the Phase II study. This is the part for which the company initially has a capital need, in order to maintain momentum in accordance with established objectives. SynAct believes that this bridge loan financing provides the company with the necessary flexible business liquidity in a time-optimised manner to carry out a range of value-driven activities, while the company needs to raising capital to finance the study’s completion only at a later stage. The Board of Directors continuously evaluates appropriate financing options in order to ensure the company’s long-term financing in a shareholder-favourable manner.
CEO Jeppe Øvlesen comments
“We are delighted to have secured this capital to finance the most critical part of the Phase II study. The rapid capital injection allows us to maintain momentum. We see a number of potentially value-added activities in the future, while at the same time this capital gives us the necessary financial flexibility to drive the business forward at a rapid pace. The Board of Directors continuously evaluates appropriate financing solutions in order to provide the greatest possible added value to both development activities and shareholders.”
A summary of the terms of the Bridge financing conditions
The bridge financing runs until 31st December 2019 at a fixed interest rate of 15% and is entirely intended to be repaid in cash. In addition to fixed interest, bridge financing runs according to the board’s assessment under market terms.
Majority shareholder have entered into lock-up agreements
In connection with bridge loan financing, SynAct’s board of directors and management have entered into lock-up agreements. The lock-up agreements mean that each party has undertaken to retain at least 90 percent of its shareholding in the company for a period of 12 months. In total, the lock-up agreements correspond to a minimum of 30 percent of the share of votes and capital in the company. The following parties have entered into lock-up agreements:
- Jeppe Øvlesen, CEO
- Torbjörn Bjerke, Chairman of the Board
- Thomas Jonassen, board member and CSO
- Henrik Stage, CFO
Financial advisor
Sedermera Fondkommission has acted as financial advisor and Markets & Corporate Law Nordic AB (“MCL”) has acted as legal advisor in connection with loan financing.
This is information that SynAct Pharma AB is obliged to disclose under the EU’s market abuse regulation. The information was submitted by the above contact person for publication on 2nd May 2019.
For further information about SynAct Pharma AB, please contact:
Jeppe Øvlesen
CEO, SynAct Pharma AB
Telephone: +45 28 44 75 67
E-mail: [email protected]
Thomas Jonassen
CSO, SynAct Pharma AB
Telephone: +45 40 15 66 69
E-mail: [email protected]