Ad hoc announcement pursuant to Art. 53 LR
Pratteln, Switzerland, August 13, 2024 - Santhera Pharmaceuticals (SIX: SANN) announces the closing of two financing agreements that provided the Company with gross funding totaling approximately CHF 69 million. Together with existing cash resources, this will support the Company's growth initiatives, repayment of maturing convertible bonds and liquidity through to the first half of 2026, at which point Santhera expects to be cash flow break-even.
CHF 35 million received from Highbridge under a new term loan agreement
Santhera received CHF 35 million from a term loan financing from certain funds managed by Highbridge Capital Management, LLC (Highbridge) with a four-year maturity and an interest rate of 3-month SARON plus 9.75%. The transaction includes changes to the existing Highbridge private convertible bonds, extending CHF 7 million with a strike price of CHF 10 by 12 months to August 2025, and converting CHF 4 million, with a strike price of CHF 5 as well as issuing the new warrants to Highbridge.
USD 30 million received from R-Bridge for partial and capped royalty monetization
Upon closing of the royalty monetization financing agreement, R-Bridge paid an upfront of USD 30 million to Santhera and will make staged sales-related milestone payments that, if achieved, would result in total payments to Santhera of a further USD 8 million.
The royalty agreement with R-Bridge is partial and capped. Santhera is monetizing 75% of the future royalty income streams (net of any agreed payment obligations of Santhera to ReveraGen and Idorsia) from its licensing agreements for AGAMREE® with Catalyst Pharmaceuticals, Inc. and with Sperogenix Therapeutics Ltd., in respect of net product sales occurring from July 1, 2024. Once the agreed threshold or duration of royalty payments is met, the North America and China royalty payments will revert back to Santhera. In addition, Santhera retained certain rights to buy back the royalty income stream.
CHF 72 million proforma cash balance
Following closing of the financings, the proforma cash balance is CHF 72 million (August 13, 2024) after receipt of CHF 58 million net of transaction fees. After repayment of the maturing listed convertible bonds and interest in the amount of CHF 14 million, the remaining cash balance is expected to provide sufficient funding through to 2026.
Further details on the two financings were announced on June 18, 2024, and can be viewed here.
About Santhera
Santhera Pharmaceuticals.
AGAMREE® is a trademark of Santhera Pharmaceuticals.
For further information please contact:
public-relations@santhera.comor
Eva Kalias, Head Investor Relations & Communications
Phone: +41 79 875 27 80
eva.kalias@santhera.com
Disclaimer / Forward-looking statements
This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Santhera Pharmaceuticals Holding AG. This publication may contain certain forward-looking statements concerning the Company and its business. Such statements involve certain risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of the Company to be materially different from those expressed or implied by such statements. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. The Company disclaims any obligation to update these forward-looking statements.
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Attachment
- 2024 08 13_Financing closing_e_final (https://ml-eu.globenewswire.com/Resource/Download/141554ff-acff-47cd-992b-972d10ed39f7)
