DGAP-News Abivax secures EUR 15m non-dilutive financing from Kreos Capital - Seite 2
Didier Blondel, CFO of Abivax, said: "This non-dilutive EUR 15m loan from Kreos Capital, together with an additional EUR 5m loan option to be decided before the end of 2020, is an important step and in line with our plans to secure Abivax's funding. Abivax's cash runway is herewith extended from early 2021 until Q2 2021.We carry on exploring further financing opportunities that protect and further build shareholder value by respecting the following two principles: no dilution for existing shareholders as well as favorable financial conditions, as we just did with Kreos Capital."
Main characteristics of the bonds
The financing under the two first committed tranches amounts to a maximum of EUR 15m, composed of 15m straight bonds with a nominal value of EUR 1 each. It is divided into two tranches of EUR 10m and EUR 5m respectively. Their respective draw down dates are at the date of the agreement (i.e. October 12, 2020) and at the latest on November 1, 2020.
An 8% +3 month Euribor (with a floor at 8% and a cap at 9%) annual interest rate applies on each tranche, provided however, that such interest rate will be raised to 9.75% after the first anniversary of the drawing of each tranche. Subject to certain early repayment cases, these two tranches will be reimbursed through 48 monthly payments after a differed repayment of the nominal value (or interest-only period) equal to 12 months for each tranche. Moreover, an additional payment corresponding to a percentage varying between 0% and 4% (depending on the date of the repayment) of the principal of the loan is due on the date of actual repayment of the loan (whether the repayment is a prepayment or not).
The loan is an unsubordinated financing treated pari passu with the existing Kreos indebtedness and is secured by customary pledges over tangible and intangible assets of Abivax including its business as a going concern, intellectual property rights in its principal drug candidates, as well as a pledge of the Company's bank accounts and receivables.
Common prepayment clauses for this type of loan are provided. In addition, Kreos has the option of requesting an advance repayment of the sums due in connection with the loan in the event of a change in control of the Company.