4D pharma plc (AIM: DDDD, NASDAQ: LBPS), a pharmaceutical
company leading the development of Live Biotherapeutic products
(LBPs), a novel class of drug derived from the microbiome, today
announces the closing of a senior secured credit facility for up to
$30m with Oxford Finance LLC, a specialty finance firm that
provides senior debt to life sciences and healthcare services
companies.
“The credit facility from Oxford Finance provides access to
additional capital strengthening our financial position and
increasing our financial flexibility as we continue to advance our
programs to bring first-in-class Live Biotherapeutics to market,”
said Duncan Peyton, CEO of 4D pharma. “The initial $12.5 million
tranche of this financing extends our cash runway into Q4 2022,
with multiple clinical catalysts throughout 2021 and 2022.”
"4D pharma have made remarkable progress in advancing their
portfolio of novel drug candidates across multiple therapeutic
areas, demonstrating their leadership in the microbiome field,"
said Christopher A. Herr, senior managing director at Oxford
Finance. “Oxford Finance is pleased to support 4D pharma as it
continues to progress its pipeline of innovative Live
Biotherapeutics.”
This financing provides 4D pharma with up to $30 million of cash
in three tranches: an initial tranche of $12.5 million at closing,
with the remaining $7.5 million and $10 million tranches dependent
on the achievement of certain milestones. The facility will require
4D pharma to make monthly interest-only payments through to
September 1, 2023, or, subject to the achievement of development
milestones, September 1, 2024.
4D pharma has also granted Oxford Finance a warrant, exercisable
for five years from today, to subscribe for 212,568 new ordinary
shares in the Company at $1.18 per share. Further warrants will be
granted to Oxford Finance as further tranches are drawn down.
About 4D pharma 4D pharma is a world leader in the development
of Live Biotherapeutics, a novel and emerging class of drugs,
defined by the FDA as biological products that contain a live
organism, such as a bacterium, that is applicable to the
prevention, treatment or cure of a disease. 4D has developed a
proprietary platform, MicroRx®, that rationally identifies Live
Biotherapeutics based on a deep understanding of function and
mechanism.
4D pharma's Live Biotherapeutic products (LBPs) are orally
delivered single strains of bacteria that are naturally found in
the healthy human gut. The Company has five clinical programs,
namely a Phase I/II study of MRx0518 in combination with KEYTRUDA®
(pembrolizumab) in solid tumors, a Phase I study of MRx0518 in a
neoadjuvant setting for patients with solid tumors, a Phase I study
of MRx0518 in patients with pancreatic cancer, a Phase I/II study
of MRx-4DP0004 in asthma, and Blautix® in Irritable Bowel Syndrome
(IBS) which has completed a successful Phase II trial.
Preclinical-stage programs include candidates for CNS disease such
as Parkinson's disease and other neurodegenerative conditions. The
Company has a research collaboration with MSD, a tradename of Merck
& Co., Inc., Kenilworth, NJ, USA, to discover and develop Live
Biotherapeutics for vaccines.
For more information, refer to https://www.4dpharmaplc.com.
About Oxford Finance LLC Oxford Finance is a specialty
finance firm providing senior secured loans to public and private
life sciences and healthcare services companies worldwide. For over
20 years, Oxford has delivered flexible financing solutions to its
clients, enabling these companies to maximize their equity by
leveraging their assets. In recent years, Oxford has originated
over $7 billion in loans, with lines of credit ranging from $5
million to $150 million. Oxford is headquartered in Alexandria,
Va., with additional offices in San Diego, Calif.; Palo Alto,
Calif.; and the greater Boston and New York City areas. For more
information, visit https://oxfordfinance.com/.
Forward-Looking Statements This announcement contains
"forward-looking statements." All statements other than statements
of historical fact contained in this announcement, including
without limitation statements regarding the availability of future
tranches, the intended use of proceeds, the effect of the funds on
the company’s current and future financial position and
flexibility, the duration of the cash runway resulting from the
initial tranche, and the company’s leadership position in the
microbiome field are forward-looking statements within the meaning
of Section 27A of the United States Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the United
States Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Forward-looking statements are often identified by the words
"believe," "expect," "anticipate," "plan," "intend," "foresee,"
"should," "would," "could," "may," "estimate," "outlook" and
similar expressions, including the negative thereof. The absence of
these words, however, does not mean that the statements are not
forward-looking. These forward-looking statements are based on the
Company's current expectations, beliefs and assumptions concerning
future developments and business conditions and their potential
effect on the Company. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting the Company
will be those that it anticipates.
All of the Company's forward-looking statements involve known
and unknown risks and uncertainties, some of which are significant
or beyond its control, and assumptions that could cause actual
results to differ materially from the Company's historical
experience and its present expectations or projections. The
foregoing factors and the other risks and uncertainties that affect
the Company's business, including the risks that the conditions to
future tranches will not be satisfied, and that the funds do not
provide the anticipated benefits or last for the anticipated cash
runway, and those additional risks and uncertainties described the
documents filed by the Company with the US Securities and Exchange
Commission ("SEC"), should be carefully considered. The Company
wishes to caution you not to place undue reliance on any
forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to publicly update or revise
any of its forward-looking statements after the date they are made,
whether as a result of new information, future events or otherwise,
except to the extent required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210729005138/en/
4D pharma Investor Relations: ir@4dpharmaplc.com
Singer Capital Markets - Nominated Adviser and Joint Broker
+44 (0)20 7496 3000
Philip Davies / Iqra Amin / James
Fischer (Corporate Finance) Tom Salvesen (Corporate Broking)
Bryan Garnier & Co.
Limited - Joint Broker +44 (0)20 7332 2500 Dominic Wilson / Phil
Walker
Stern Investor Relations, Inc. +1-212-362-1200 Julie Seidel
Julie.seidel@sternir.com
Image Box Communications +44 (0)20 8943 4685 Neil Hunter /
Michelle Boxall neil@ibcomms.agency / michelle@ibcomms.agency
4d Pharma (LSE:DDDD)
Historical Stock Chart
From Apr 2024 to May 2024
4d Pharma (LSE:DDDD)
Historical Stock Chart
From May 2023 to May 2024