NOXXON Pharma, a biotechnology company focussed on improving cancer treatments by targeting the tumour microenvironment (TME), has secured an equity capital raise totalling EUR6.2 million, including USD5 million committed by lead investor, Acuitas Capital, LLC, a US based family office.
This equity capital raise meets the criteria to end YA II PN’s (Yorkville) ability to invest in NOXXON via the variable rate equity vehicle without the consent of NOXXON. Additionally, NOXXON has contractually committed not to use Yorkville or any other variable rate vehicles for two years, by which time the ability to pull tranches from the Yorkville vehicle will have expired.
Acuitas Capital, LLC agreed to purchase 3,783,201 shares at EUR1.17 per share, a 10 per cent discount to the closing bid price of NOXXON ordinary shares on 14 November, 2018 of EUR1.30 per share. Furthermore, Acuitas Capital, LLC has been granted warrants to acquire an equivalent number of shares at EUR1.4148 per share, 1.2-fold of the purchase price for the ordinary shares. Kreos and holders of the convertible bonds listed on Euronext Access shall also purchase shares in exchange for outstanding obligations at an equivalent price per share to that received by Acuitas Capital, LLC.
“This investment by Acuitas Capital, LLC into ordinary shares of the company is transformational for NOXXON. The support of Acuitas Capital, LLC underscores the potential of our pipeline, enables NOXXON to fully exploit the data from the ongoing NOX-A12 trial and gives the team more flexibility to further develop our clinical assets,” says Aram Mangasarian, CEO of NOXXON Pharma. He continued, “In addition, the elimination of the Kreos debt further strengthens NOXXON‘s balance sheet by eliminating interest and principal payment obligations.”
