EQS-News Relief Announces Implementation of New Share Subscription Facility with Main Shareholder GEM
EQS Group-News: RELIEF THERAPEUTICS Holdings AG / Key word(s): Miscellaneous
Relief Announces Implementation of New Share Subscription Facility with Main Shareholder GEM
Geneva, Switzerland, January 21, 2021 - RELIEF THERAPEUTICS Holding AG (SIX: RLF, OTCQB: RLFTF) ("Relief" or the "Company"), a biopharmaceutical company with its lead compound RLF-100TM (aviptadil) in advanced clinical development to treat severe COVID-19 patients, today announced that it has signed a binding agreement with the Company's main shareholder GEM Global Yield LLC SCS ("GEM") for the implementation of a new Share Subscription Facility ("SSF") in the amount of up to CHF 50 million. GEM is Relief's longest standing shareholder, dating back to their initial investment in 2015, and currently owns over 1.3 billion shares of Relief common stock.
Under the terms of the SSF, Relief has the right to periodically, during a timeframe of up to three years, issue and sell shares to GEM. Under the facility, GEM undertakes to subscribe to or acquire ordinary registered RELIEF THERAPEUTICS Holding AG shares upon Relief's exercise of a draw down notice. In accordance with the customary terms of the SSF agreement, Relief will control the timing and maximum amount of any draw down, and retains the right, not the obligation, to draw down on the full commitment amount. Future subscription prices under the SSF will correspond to 90% of the average of the closing bid prices on the SIX Swiss Exchange during the reference period, which corresponds to 15 trading days following Relief's draw down notice.
Proceeds from the SSF drawdowns will be used to produce commercial quantities of RLF-100TM (aviptadil) and acquire additional assets to expand and diversify Relief's drug pipeline.
Raghuram (Ram) Selvaraju, Chairman of the Board of Relief, said: "Establishing a new SSF underlines GEM's commitment to and faith in Relief. This facility gives us increased flexibility to meet anticipated demand, should RLF-100TM show positive results in the ongoing trial in critical COVID-19 patients and gain marketing authorization. It also enables us to move quickly, should we have opportunities to build our pipeline."