Mesoblast Completes US$110/A$138 Million Financing Led by US Strategic Investor Group
March 02 2021 - 7:00AM
Mesoblast Limited (Nasdaq:MESO; ASX:MSB) announced today it has
entered into subscription agreements for a total of US$110 million
via the issue of 60 million shares in a private placement led by a
strategic US investor group (SurgCenter Development), at A$2.30 per
share, a 6.5% discount to the price at the close of trading
February 25, 2021.
Based on the US$110 million private placement
(A$138 million), pro-forma cash-on-hand at December 31, 2020 would
be approximately US$187.5 million. The investors also receive
warrants to acquire a further 15 million shares at a price of
A$2.88 per share, a 25% premium to the placement price, which may
raise up to a further A$43.2 million (US$34 million at the current
exchange rate), on or before 15 March 2028. Mesoblast has a right
to call on the funds at any time during the term, subject to a
share trading price of at least A$4.32 for 45 consecutive days.
Specific use of proceeds includes:
- The private placement will provide financial strength for
operational and regulatory initiatives across multiple products as
the company undertakes important late-stage meetings with the
United States Food & Drug Administration (FDA) in the second
and third quarters of this calendar year.
- Investment in commercial supply of remestemcel-L ahead of
potential approval for graft versus host disease in children and in
optimized manufacturing for larger market opportunities.
- Advancing manufacturing and development of rexlemestrocel-L
platform to meet commercial objectives for chronic heart failure
and chronic low back pain due to degenerative disc disease
following the recent completion of Phase 3 trials in these
indications.
- Working capital and general corporate purposes.
About SurgCenter Development
Since its inception in 1993, SurgCenter has
partnered in over 230 facilities, with a current portfolio of 80
operational facilities, located in over 20 states throughout the
US. SurgCenter is an industry leader in the performance of complex
spine surgery and outpatient joint replacement, and has partnered
with thousands of surgeons over its three-decade history.
About Mesoblast
Mesoblast is a world leader in developing
allogeneic (off-the-shelf) cellular medicines for the treatment of
severe and life-threatening inflammatory conditions. The Company
has leveraged its proprietary mesenchymal lineage cell therapy
technology platform to establish a broad portfolio of late-stage
product candidates which respond to severe inflammation by
releasing anti-inflammatory factors that counter and modulate
multiple effector arms of the immune system, resulting in
significant reduction of the damaging inflammatory process.
Mesoblast has a strong and extensive global
intellectual property portfolio with protection extending through
to at least 2040 in all major markets. The Company’s proprietary
manufacturing processes yield industrial-scale, cryopreserved,
off-the-shelf, cellular medicines. These cell therapies, with
defined pharmaceutical release criteria, are planned to be readily
available to patients worldwide.
Mesoblast has completed Phase 3 trials of
rexlemestrocel-L for advanced chronic heart failure and chronic low
back pain. Remestemcel-L is being developed for inflammatory
diseases in children and adults including steroid refractory acute
graft versus host disease and moderate to severe acute respiratory
distress syndrome. Two products have been commercialized in Japan
and Europe by Mesoblast’s licensees, and the Company has
established commercial partnerships in Europe and China for certain
Phase 3 assets.
Mesoblast has locations in Australia, the United
States and Singapore and is listed on the Australian Securities
Exchange (MSB) and on the Nasdaq (MESO). For more information,
please see www.mesoblast.com, LinkedIn: Mesoblast Limited and
Twitter: @Mesoblast
Forward-Looking Statements
This announcement includes forward-looking
statements that relate to future events or our future financial
performance and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of
activity, performance or achievements to differ materially from any
future results, levels of activity, performance or achievements
expressed or implied by these forward-looking statements. We make
such forward-looking statements pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. Forward-looking statements
should not be read as a guarantee of future performance or results,
and actual results may differ from the results anticipated in these
forward-looking statements, and the differences may be material and
adverse. Forward-looking statements include, but are not limited
to, statements about the initiation, timing, progress and results
of Mesoblast’s preclinical and clinical studies, and Mesoblast’s
research and development programs; Mesoblast’s ability to advance
product candidates into, enroll and successfully complete, clinical
studies, including multi-national clinical trials; Mesoblast’s
ability to advance its manufacturing capabilities; the timing or
likelihood of regulatory filings and approvals, manufacturing
activities and product marketing activities, if any; the
commercialization of Mesoblast’s product candidates, if approved;
regulatory or public perceptions and market acceptance surrounding
the use of stem-cell based therapies; the potential for Mesoblast’s
product candidates, if any are approved, to be withdrawn from the
market due to patient adverse events or deaths; the potential
benefits of strategic collaboration agreements and Mesoblast’s
ability to enter into and maintain established strategic
collaborations; Mesoblast’s ability to establish and maintain
intellectual property on its product candidates and Mesoblast’s
ability to successfully defend these in cases of alleged
infringement; the scope of protection Mesoblast is able to
establish and maintain for intellectual property rights covering
its product candidates and technology; estimates of Mesoblast’s
expenses, future revenues, capital requirements and its needs for
additional financing; Mesoblast’s financial performance;
developments relating to Mesoblast’s competitors and industry; and
the pricing and reimbursement of Mesoblast’s product candidates, if
approved. You should read this press release together with our risk
factors, in our most recently filed reports with the SEC or on our
website. Uncertainties and risks that may cause Mesoblast’s actual
results, performance or achievements to be materially different
from those which may be expressed or implied by such statements,
and accordingly, you should not place undue reliance on these
forward-looking statements. We do not undertake any obligations to
publicly update or revise any forward-looking statements, whether
as a result of new information, future developments or
otherwise.
Not an offer of securities
This announcement does not constitute an offer to
sell, or a solicitation of an offer to buy, securities in the
United States or any other jurisdiction. Any securities described
in this announcement have not been registered under the US
Securities Act of 1933 and may not be offered or sold in the United
States except in transactions registered under the Securities Act
or exempt from, or not subject to, registration under the US
Securities Act and applicable US state securities laws.
Release authorized by the Chief Executive.
For more information, please contact:
Corporate Communications / Investors |
Media |
Paul
Hughes |
Kristen
Bothwell |
T: +61 3
9639 6036 |
T: +1 917
613 5434 |
E:
paul.hughes@mesoblast.com |
E:
kbothwell@rubenstein.com |
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