Shield Therapeutics PLC Shareholder loan facilities (4175N)
January 29 2021 - 9:38AM
UK Regulatory
TIDMSTX
RNS Number : 4175N
Shield Therapeutics PLC
29 January 2021
Shield Therapeutics plc
("Shield" or the "Group" or the "Company")
Shareholder loan facilities provide ongoing support
London, UK, 29 January 2021: Shield Therapeutics plc (LSE: STX),
a commercial stage pharmaceutical company with a focus on
addressing iron deficiency with its lead product
Feraccru(R)/Accrufer(R) (ferric maltol), confirms that formal
agreements for the shareholder loan facilities announced on 10
December 2020 have now been executed.
AOP Orphan International AG ("AOP"), a shareholder owning 10.7%
of the Company's issued share capital (registered in the name of
MaRu AG), and Dr Christian Schweiger, a board member and holder of
3.5% of the Company's issued share capital, had provided letters of
intent to the Company stating that they would be prepared to lend
the Group up to EUR4.0 million and CHF1.0 million respectively in
order to provide additional working capital for the Group. In total
these amount to approximately GBP4.4 million which, if drawn down
in full, would extend the Group's cash runway until around the end
of 2021, a significant extension from the current cash runway which
extends into Q2 2021.
The two loan facilities are unsecured and are structured
identically and provide for 50% of each facility to be drawn down
by 31 March 2021 (originally planned as 1 February 2021), and the
remaining 50% to be available for drawdown at Shield's request
during the rest of 2021. Interest of 10% pa is payable on any
amounts drawn down. The shareholder loans will be repayable in cash
in the event that Shield receives an upfront licence payment of no
less than EUR10 million for US rights to Accrufer(R), secures a
debt facility with another lender for no less than approximately
GBP4.4 million, raises more than EUR10 million of new equity or, in
any event, by 31 January 2022. The lenders will have the right, but
not the obligation, to convert any outstanding loan balances into
new ordinary shares in Shield at any time at a 5% discount to the
average closing middle market price for the preceding ten business
days or, in the event of a new equity raise, on the same terms as
all other investors subscribe. An arrangement fee of 2% is payable
to the lenders on signing the formal loan documentation.
Related Party Transactions
In view of the size of the shareholder loan facilities and the
associated arrangement fee and the fact that AOP is a substantial
shareholder in Shield for the purposes of the AIM Rules for
Companies and Dr. Christian Schweiger is on the Board of Shield,
the entering into of the two shareholder loan facilities is
considered to constitute related party transactions under Rule 13
of the AIM Rules for Companies. The independent directors consider,
having consulted with Peel Hunt LLP, the Company's nominated
adviser, that the terms of the shareholder loan facilities are fair
and reasonable insofar as shareholders are concerned.
Commenting on this update, Tim Watts, CEO of Shield Therapeutics
plc, said: "I am very grateful to AOP and Dr Schweiger for making
these loan facilities available to the Group as they will provide
the cash runway and the time for the Board to reach the optimal
outcome for shareholders regarding the commercialisation of
Accrufer(R) in the US."
For further information please contact:
Shield Therapeutics plc www.shieldtherapeutics.com
Tim Watts, CEO +44 (0)20 7186 8500
Nominated Adviser and Joint
Broker
Peel Hunt LLP
James Steel/Dr Christopher
Golden +44 (0)20 7418 8900
Joint Broker
finnCap Ltd
Geoff Nash/Matt Radley/Alice
Lane +44 (0)20 7220 0500
Financial PR & IR Advisor
Walbrook PR +44 (0)20 7933 8780 or shield@walbrookpr.com
+44 (0)7980 541 893 / +44 (0)7584 391
Paul McManus/Lianne Cawthorne 303
About Shield Therapeutics plc
Shield is a de-risked, specialty pharmaceutical company focused
on commercialising its lead product, Feraccru(R)/Accrufer(R), a
novel, non-salt based oral therapy for adults with iron deficiency
with or without anaemia. Feraccru(R)/Accrufer(R) has been approved
for use in the United States, European Union, UK and Switzerland
and has exclusive IP rights until the mid-2030s. Feraccru(R) is
commercialised in the UK and European Union by Norgine B.V. and the
Company is currently in the process of evaluating commercialisation
options for the US market, including the potential launch of
Accrufer (R) in the US by Shield. Shield also has an exclusive
licence agreement with Beijing Aosaikang Pharmaceutical Co., Ltd.,
for the development and commercialisation of
Feraccru(R)/Accrufer(R) in China, Hong Kong, Macau and Taiwan.
For more information, please visit www.shieldtherapeutics.com .
Follow Shield on Twitter @ShieldTx
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