Santhera Secures CHF 45 Million

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20.09.2021
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Santhera Pharmaceuticals has strengthened its capital structure via an oversubscribed equity financing of CHF 20 million, a placement of private convertible bonds of CHF 15 million and upsizing of an existing financing arrangement of up to CHF 10 million. The new funding secures current operations to mid-2022, past the NDA filing for vamorolone.

Taking into account the estimated net proceeds of the agreed funding of approximately CHF 42 million, Santhera currently expects to have sufficient liquidity until mid-2022. “We are very pleased to have secured funding for our current operations well past a key upcoming inflection point, namely the filing of a new drug application (NDA) for vamorolone in DMD with the U.S. Food and Drug Administration (FDA) on the back of the successful results from the pivotal VISION-DMD study. At the same time, this mixed equity-debt financing minimizes dilution for existing shareholders and allows sufficient capital for the repayment of the bonds due in February 2022,” said Dario Eklund, Chief Executive Officer of Santhera.

Vamorolone is a first-in-class dissociative steroid which retains the anti-inflammatory activity of corticosteroids while decreasing the deleterious side effects. As such, vamorolone could emerge as a promising alternative to existing corticosteroids, the current standard of care in children and adolescent patients with DMD (Duchenne muscular dystrophy). Positive and statistically highly significant topline results from a Phase 2b study were presented in June 2021.

Santhera's existing investors Idorsia, certain funds managed by Highbridge Capital Management LLC (“Highbridge”) and Waypoint Capital and a number of new US and other international institutional investors have been allocated Santhera shares in the aggregate gross amount of CHF 20 million in a private placement. The placement price has been set at CHF 1.60 per share. In addition, each investor will receive one warrant per two shares subscribed, each of which is exercisable for one Santhera share at an exercise price of CHF 2.00 at any time upon issuance for a period of five years. Santhera expects to complete the capital increase and to announce the exact number of shares issued within the next few days.

In addition Highbridge has committed to increase its existing financing arrangement with Santhera to provide up to CHF 10 million in new senior secured exchangeable notes. Santhera will also issue senior unsecured private convertible bonds with an aggregate principal amount of CHF 15million to Highbridge (the Private Convertible Bonds). The Private Convertible Bonds can be converted by Highbridge into Santhera shares at a conversion price of CHF 1.76, implying a 10% premium on the issue price of the Santhera shares in the private placement.

(Press release / SK)

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