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Kiadis Pharma obtains up to €15 million debt financing from Kreos Capital
Amsterdam-Duivendrecht, The Netherlands, August 17, 2017 – Kiadis Pharma N.V. (“Kiadis Pharma” or the “Company”) (Euronext Amsterdam and Brussels: KDS), a clinical stage biopharmaceutical company developing innovative products to make bone marrow transplantations safer and more effective for patients suffering from blood cancers and inherited blood disorders, today announces that it has obtained a debt facility of up to €15 million from Kreos Capital.
The loan consists of two tranches, with the first tranche of €10 million immediately drawn down and a second tranche of €5 million upon the company raising €20 million in additional funds. Kiadis Pharma will use the loan to advance the development of the Company’s ATIR products, for general corporate purposes and to repay the remaining €5.3 million of existing Dutch Government Loans.
Arthur Lahr, CEO of Kiadis Pharma, commented: “We are pleased with this non-dilutive debt funding from Kreos Capital, Europe's largest provider of debt-financing solutions to high-growth companies. The loan allows us to refinance an existing loan with improved terms and extends our cash runway, as we progress towards potentially obtaining marketing approval for ATIR101™ in the European Union in the second half of 2018.”
Maurizio PetitBon, General Partner of Kreos Capital, commented: “We are pleased to be supporting Kiadis Pharma, a company that is advancing the field of allogeneic hematopoietic stem cell transplantations and is improving the outcomes of patients suffering from blood cancers and inherited blood disorders. The flexible funding provided by Kreos will provide a strong foundation for Kiadis to advance the development of ATIR101™.”
Draw down
Tranche A: €10 million upon closing
Tranche B: €5 million conditional upon the Company raising at least €20 million of additional funds before 1 July 2018
Term
Tranche A: 45 months
Tranche B: 48 months
Repayment
Tranche A: Interest only for the first 9 months, with the remaining 36 months amortizing in equal monthly instalments comprising principal and interest
Tranche B: Interest only for the first 12 months, with the remaining 36 months amortizing in equal monthly instalments comprising principal and interest
Interest
10% annual fixed interest rate
End of loan payment
5% of the amount drawn down
Structure
Security over assets including IP; no financial covenants
Warrants
Up to 253,617 warrants, of which 211,348 issued at closing, entitling Kreos Capital to subscribe for up to 253,617 new Company shares at a warrant exercise price of €6.36 (the exercise price being subject to adjustment in case of certain corporate and dilutive events)