Prima Secures US$37.4M Investment Agreement With US Institutional Investor Bergen

SYDNEY, AUSTRALIA--(Marketwired - Oct 2, 2014) - Prima BioMed Ltd (ASX: PRR) (NASDAQ: PBMD)

Highlights

• Investment agreement for up to US$37.4 million to fund acquisition of Immutep SA and provide ongoing working capital
• Avoids share value dilution at current levels
• Inbuilt flexibility and competitive terms

Prima BioMed Ltd (ASX: PRR) (NASDAQ: PBMD) ("Prima" or the "Company") is pleased to announce the execution of an investment agreement (the "Agreement") with Bergen Global Opportunity Fund, LP ("Bergen" or the "Investor"), a New York institutional investor managed by Bergen Asset Management, LLC ("Bergen Asset Management").

Under the Agreement, Bergen will make an initial upfront investment of US$2.5 million by way of a 36-month interest-free unsecured convertible security. Bergen will also invest up to US$700,000 per month in Prima's equity over the next 24 months, with the option to increase each of the monthly tranches to an amount not exceeding US$1.5 million by mutual consent of Bergen and the Company.

This investment will provide Prima with funding for the acquisition of Immutep SA ("Immutep"), as announced concurrently with this announcement, as well as ongoing working capital. The acquisition of Immutep is conditional on obtaining shareholder approval at the Company's AGM for an increase in its share placement capacity in order to fund the acquisition. The working capital will principally be used for its clinical development of CVac™, the clinical development of IMP321 and continued research and development of a number of new LAG-3 related technologies acquired as part of the Immutep transaction.

Importantly, Prima has retained the right to pause the monthly tranche schedule and, alternatively, to terminate the Agreement at any time. Bergen has also agreed to certain, strict limitations on exiting its investment. The key aspects of the Agreement and the Company's rationale for securing this funding are set out in the Appendix below.

Prima's Chief Executive Officer, Mr. Marc Voigt said: "The funding provides us with financing certainty for the acquisition of Immutep and over the next two years as we continue to develop our clinical trial program for CVac and Immutep's product portfolio. This investment structure avoids dilution for our shareholders at today's subdued level while allowing us to maintain a substantial and relatively constant cash balance. Additionally, Bergen has previously supported Prima through substantial private placement participation."