BioSenic reaches agreement on binding term sheets with main creditors to restructure past financial debts

INSIDE INFORMATION

New binding term sheets have been formulated upon for the replacement of the Monument and Patronale bonds and loans by new unsecured convertible bonds as well as for the long-term extension of the past loan financing with the European Investment Bank.

Mont-Saint-Guibert, Belgium, September 14, 2023, 7.00 am CEST – BIOSENIC (Euronext Brussels and Paris: BIOS), the clinical-stage company specializing in serious autoimmune and inflammatory diseases and cell therapy, today announces that it has reached an agreement with Patronale, Monument and the European Investment Bank (hereafter the "main creditors"), for the restructuring of its key financial debts.

Patronale and Monument agree to replace their outstanding loans granted to BioSenic by an aggregate outstanding principal amount of EUR 7.5 million plus accrued interests, by new convertible bonds to be issued by BioSenic later this year. The convertible bonds will not be secured and will have a maturity date at the horizon of December 31, 2030, which can be further extended by BioSenic for up to 24 months depending on its cash balance, end of 2032. BioSenic has also negotiated a lower interest rate of 5% per year, payable annually, with an additional non-compounding interest of 3% per year that will be added to the principal amount upon conversion or (p)repayment of a convertible bond. The convertible bonds will only become convertible as from 10 trading days after the announcement of the official remittance to the Regulatory Agency of the Final Clinical Report following the final results of BioSenic’s phase 3 clinical trial of its lead Oral ATO therapeutic candidate targeting chronic graft versus host disease (cGVHD). The conversion price will be equal to 95% of the 30-calendar day VWAP immediately preceding the date of the conversion notice. The outstanding warrants of Patronale are being cancelled.

The outstanding loan from the European Investment Bank ("EIB") for a principal outstanding amount of EUR 8 million should as well be extended to 2030, with the same 24-month extension possibility as for the new convertible bonds. The interest rate will also be aligned with the new convertible bonds. The outstanding warrants of the EIB should also cancelled, and EIB should receive a similar return as Monument and Patronale if the new convertible bonds are effectively converted into shares. The completion of the restructuring is still subject to EIB approval.