IRLAB increases its liquidity with a loan facility of up to SEK 55 million that extends financial runway and increases business opportunities
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | Small Cap Stockholm |
| Sektor | Hälsovård |
| Industri | Bioteknik |
Gothenburg, Sweden, December 22, 2023 – IRLAB Therapeutics AB (Nasdaq Stockholm: IRLAB A), a company discovering and developing novel treatments for Parkinson’s disease, today announced that the company has entered into a loan agreement of up to SEK 55 million issued by Formue Nord Fokus A/S.
Background and rationale for the loan
IRLAB has a world-leading portfolio of drug candidates aiming to transform the lives of people living with Parkinson’s disease and other neurological diseases. The portfolio has developed exceedingly well in the last year and presents several potential transformative and value-creating possibilities during the coming 12-18 months. This liquidity injection increases IRLAB’s ability to strengthen the position of the development projects and in the ongoing business development activities to enter sound agreements with licensors, partners or collaborators for the drug candidates across the portfolio.
“We are on the precipice of several value inflection points across our portfolio in the upcoming 12-18 months. To capitalize on these possibilities, increased liquidity is crucial. The loan is therefore a rational, important, and integral part of IRLAB’s strategy to have a capital structure that increases shareholder value while considering the company’s current risk level. We are also pleased to be able to present a financing solution with limited dilution for our shareholders,” said Viktor Siewertz, CFO, IRLAB.
“This is a financing solution that will provide the company with an extended financial runway to enable us to be better positioned in the ongoing discussions with potential partners for our development programs,” said Gunnar Olsson, CEO, IRLAB.
Loan terms
The loan amounts to a total of up to SEK 55 million and is divided into two tranches. The first tranche of SEK 30 million is paid out upon signing of the loan agreement, and the second tranche, SEK 25 million, can be drawn between May 22 and August 22, 2024, at IRLAB’s discretion under the condition that IRLAB’s market capitalization exceeds SEK 550 million at the time. The loan matures for payment on May 22, 2025. The lender has the right to convert SEK 10 million of the loan to shares at a share price corresponding to 130 per cent of the the volume-weighted average price during 10 trading days preceding the date of signing of the loan agreement. The loan is subject to a set-up fee of 5 percent of the loan facility and carries an annual interest rate of STIBOR 3M + 10 percent of the outstanding loan amount and will be paid at the end of each calendar quarter. IRLAB has the right to repay the loan at any time without any redemption fee. The Board and company have assessed the loan terms as market competitive and consider taking the loan to be in the best interest of both the company and its shareholders.