Aptahem enters into an agreement with Yorkville Advisors Global securing financing of up to MSEK 20
Aptahem AB (publ), a biotechnology company that develops aptamer-based pharmaceuticals for the treatment of life-threatening conditions in which a combination of coagulation and inflammation are involved in the disease process, today announce its entry into an issuance agreement with YA II PN Ltd, a fund represented by U.S.-based Yorkville Advisors Global (”Yorkville”). Under the terms of the issuance agreement, Yorkville, acting as the investment manager on behalf of one of its investment funds, will purchase convertible notes of Aptahem. The agreement secures financing of up to MSEK 20, during a 36-month period, for Aptahem if the whole commitment is exercised. The agreement is subject to resolution by Aptahem’s General Meeting to authorize the board to issue convertible notes for the relevant periods, the first resolution was adopted on the company’s Extraordinary General Meeting held on June 7, 2018.
Aptahem has entered into the agreement to secure the company’s financing to complete a first-in-man clinical study with Apta-1. The agreement is expected to provide Aptahem with financing for the next 12 months, which has been deemed sufficient to complete a clinical phase 1 study.
Mikael Lindstam, CEO Aptahem, comments ”We have made tremendous progress with Apta-1 during the past year. Our timeline is aggressive, and we have several interested parties awaiting our results. It is of essence that we do not lose our pace, which is always a pertinent risk when raising capital. Therefore, I see this agreement as a backup alternative, as a complement to our current financing, if needed, in order to secure the completion of Apta-1’s first clinical study. The main purpose of this agreement is to enable our management to keep our eyes on the two targets: achieving clinical proof-of-concept and entering a strategic partnership.”
Summary of terms with Yorkville
Aptahem has on June 26, 2018 entered into an issuance agreement with Yorkville outlining the terms for the issuance of and subscription to notes convertible into new shares in Aptahem (”the Yorkville Agreement”). The Yorkville Agreement secures financing for Aptahem of up to MSEK 20 from Yorkville, during a 36-month period, if the whole commitment is exercised, through the subscription of notes convertible into shares in Aptahem. The convertible notes will be issued in tranches upon request from Aptahem. The subscription price for each convertible note shall be each note’s par value, i.e. SEK 100,000. However, Aptahem shall pay a commitment fee to Yorkville of 12 % on the aggregate principal amount of the convertible notes issued in each tranche and the commitment fee will be deducted from the subscription price of the convertible notes. The convertible notes accrue no interest. Each convertible note gives Yorkville a right, but not an obligation, to exercise the note for subscription of new shares in Aptahem at a conversion price of 90 % of the lowest daily volume weighted average price for Aptahem’s share over the five trading days prior to the date of conversion or the date of issuance of the note, at Yorkville’s discretion. Each convertible note has a duration of twelve months from its issuance date. If a note has not been converted into shares prior to its maturity date, Aptahem must redeem in cash the outstanding amount under the note.
The first tranche of convertible notes under the Yorkville Agreement, for an aggregate principal amount of MSEK 2.5, has been issued by Aptahem’s board on June 26, 2018 and the convertible notes issued has subsequently been subscribed by Yorkville. Any subsequent tranche of convertible notes under the Yorkville Agreement will be made at the discretion of Aptahem, however subject to the satisfaction of certain conditions precedent set out in the Yorkville Agreement. Any subsequent tranche of convertible notes shall be in an amount selected by Aptahem, up to a maximum amount of MSEK 2.5. In order to secure Aptahem’s delivery of shares under the Yorkville Agreement, Mikael Lindstam, Aptahem’s CEO, and Yorkville has entered into a share lending agreement, whereby Mikael Lindstam undertakes to provide Yorkville with shares, owned by Mikael Lindstam and other shareholders of Aptahem, before the funding of each tranche under the Yorkville Agreement.
For further information:
Mikael Lindstam, CEO, Aptahem AB
Tel: + 46 (0)766-33 36 99
E-mail: ml@aptahem.com
This information is information that Aptahem AB is obliged to make public according to the EU Market Abuse Regulation. The information was provided through the agency of the contact persons above, for publication on June 27, 2018.
Forward-looking statements
This communication contains forward-looking statements, consisting of subjective assumptions and forecasts for future scenarios. Predictions for the future only apply as of the date they are made and are, by their nature, as is research and development work in the biotechnology segment, associated with risk and uncertainty. With this in mind, the actual outcome may deviate significantly from the scenarios as described in this press release.
About Aptahem
Aptahem AB (APTA) is a biotechnology company that develops aptamer-based pharmaceuticals for the treatment of life-threatening conditions in which a combination of coagulation and inflammation are involved. The company’s primary pharmaceutical candidate, Apta-1, is being developed with the aim of preventing the high mortality rate caused by organ and tissue damage in sepsis patients, among others. The company possesses patent protection in strategic target markets and actively seeks business development opportunities with potential collaborators.