logo-loader
RNS
Redx Pharma Plc

Short-term Debt Funding Secured

/**/ sup{font-size:80%}h1{margin-top:0cm;margin-right:0cm;margin-bottom:9.0pt;margin-left:36.0pt;text-align:justify;text-indent:-36.0pt;line-height:15.0pt;font-size:10.0pt;font-family:"Arial Bold","serif";}h2{margin-top:0cm;margin-right:0cm;margin-bottom:9.0pt;margin-left:72.0pt;text-align:justify;text-indent:-36.0pt;line-height:15.0pt;font-size:10.0pt;font-family:"Arial","sans-serif";font-weight:normal;}h3{margin-top:0cm;margin-right:0cm;margin-bottom:9.0pt;margin-left:108.0pt;text-align:justify;text-indent:-36.0pt;line-height:15.0pt;font-size:10.0pt;font-family:"Arial","sans-serif";font-weight:normal;}h4{margin-top:0cm;margin-right:0cm;margin-bottom:9.0pt;margin-left:162.0pt;text-align:justify;text-indent:-54.0pt;line-height:15.0pt;font-size:10.0pt;font-family:"Arial","sans-serif";font-weight:normal;}h5{margin-top:0cm;margin-right:0cm;margin-bottom:9.0pt;margin-left:198.0pt;text-align:justify;text-indent:-36.0pt;line-height:15.0pt;font-size:10.0pt;font-family:"Arial","sans-serif";font-weight:normal;}h6{margin-top:0cm;margin-right:0cm;margin-bottom:9.0pt;margin-left:234.0pt;text-align:justify;text-indent:-36.0pt;line-height:15.0pt;font-size:10.0pt;font-family:"Arial","sans-serif";font-weight:normal;}ol{margin-bottom:0cm;}ul{margin-bottom:0cm;} .z{size:595.3pt 841.9pt;margin:2.0cm 2.0cm 2.0cm 2.0cm;}div.z{}p.ao{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-div: italic; line-height: normal; margin-bottom: 0cm; text-align: justify}p.ap{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: normal; margin-bottom: 0cm; text-align: center}p.aq{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal}p.ar{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom:.0001pt;text-align: justify;line-height:normal}p.as{margin-top:0cm;margin-right:0cm;margin-bottom:0cm;margin-left:36.0pt;margin-bottom:.0001pt;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom:.0001pt; text-align:justify;text-indent:-18.0pt;line-height:normal}span.ai{font-family:Symbol}p.at{margin-top:0cm;margin-right:0cm;margin-bottom:0cm;margin-left:36.0pt;margin-bottom:.0001pt;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom: .0001pt;text-align:justify;text-indent:-18.0pt;line-height:normal}p.au{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:36.0pt;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";margin-bottom:0cm;margin-bottom:.0001pt; text-align:justify;text-indent:-18.0pt;line-height:normal} p.av{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: normal; margin-bottom: 0cm; text-align: justify}table.aw{width:451.5pt; margin-left:-.75pt}td.ad{width:339.35pt;padding:.75pt .75pt .75pt .75pt}p.ax{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:107%;font-size:11.0pt;font-family:"Calibri","sans-serif";font-weight: bold; line-height: normal; margin-bottom: 0cm}td.ac{width:104.65pt;padding:.75pt .75pt .75pt .75pt}span.aa{color:blue} /**/
RNS Number : 6015B
Redx Pharma plc
10 June 2019
 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN

 

REDX PHARMA PLC

("Redx" or "the Company" or "the Group")

 

Short-term Debt Funding Secured

 

Alderley Park, 10 June 2019 Redx (AIM: REDX), the drug discovery and development company focused on cancer and fibrosis, is today providing an update on its ongoing plans to strengthen the Group's balance sheet.

 

Further to the announcement released on 3 May 2019, the Board is pleased to announce that the Company  has signed an agreement with Moulton Goodies Ltd. ("MGL") for a fixed rate secured loan note facility of up to £2.5 million (the "Loan"). 

 

The Loan will serve to further extend the Company's cash runway into the fourth quarter of 2019 and will be used to augment general working capital.  The Company intends to immediately draw down £1 million of the Loan, and has the option to draw the remainder in up to two further tranches of no less than £500,000 each.

 

As previously highlighted, the Board continues to be in active discussions with shareholders and third-party healthcare specialist investors regarding longer-term funding of the Group and to pursue potential value realisation opportunities for the pan-RAF research programme.  The Company will provide further updates in due course.

 

As MGL holds 18.16% of the Company's issued ordinary shares the Loan constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules.  The Board consider that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned, having consulted with Cantor Fitzgerald Europe, the Company's nominated adviser.

 

The principal terms of the Loan are as follows:

 

·    Up to £2.5 million may be borrowed;

·    The Loan is secured by fixed and floating charges over all assets of the Group and its subsidiaries, with the exception of the pan-RAF research programme;

·    Interest is payable at 10 per cent. per annum, with such interest to be paid at the same time as the Loan is repaid;

·    The Loan (together with all unpaid interest) is repayable in full on 31 December 2019, but may become payable earlier in the event, inter alia, of default;

·    MGL can request that the Company capitalise the Loan into new ordinary shares in the Company, either at maturity or in the event that the Company completes an equity financing to raise at least £10 million (or such lesser amount as MGL may determine at its discretion, providing such amount is at least £1 million) ("Financing Round"). In addition, the Company has the right to require MGL to capitalise the Loan on a Financing Round which, inter alia, raises gross proceeds of at least £20 million. Any capitalisation would be subject, inter alia, to the Company obtaining shareholder approval to issue the requisite number of new ordinary shares and to disapply pre-emption rights;

·    The Company has undertaken to draw the facility in full upon any Financing Round taking place. In the event that the Loan is capitalised on a Financing Round, it would do so at discounts of 30 per cent. to the issue price of the new ordinary shares in the Financing Round for those amounts drawn prior to the Financing Round and 13 per cent. to the issue price of the new ordinary shares in the Financing Round for those amounts drawn upon the Financing Round;

·    In the event that the Loan is capitalised on maturity, such capitalisation would be at the lower of the volume-weighted average price per ordinary share over the 10 business day period immediately prior to either (a) the date of signing the agreements for the Loan; or (b) the 31st December 2019 (or by reference to changes in the Group's net asset value over the same period if no ordinary shares were to remain publicly traded at maturity);

·    In the event of any sale of all, or substantially all, of the assets or ordinary shares of the Company, or a merger or similar reorganisation of the Company, the Loan is repayable with a 30 per cent. repayment premium on amounts drawn, together with any interest due;

·    Standard representations and warranties have been provided to MGL upon signing the Loan agreements and will be repeated at each subsequent draw down.

 

 

For further information, please contact:

 

Redx Pharma Plc

T: +44 1625 469 920

Lisa Anson, Chief Executive Officer

 

James Mead, Chief Financial Officer

 

 

 

Cantor Fitzgerald Europe (Nominated Advisor & Joint Broker)

T: +44 20 7894 7000

Phil Davies

 

 

 

 

 

WG Partners LLP (Joint Broker)

T: +44 20 3705 9330

Claes Spång/ Chris Lee/ David Wilson

 

 

 

 

 

FTI Consulting

T: +44 20 3727 1000

Simon Conway/Ciara Martin

 

 

About Redx Pharma Plc 

Redx is a UK based biotechnology company whose shares are traded on AIM (AIM:REDX). Redx's vision is to become a leading biotech focused on the development of novel precision medicines that have the potential to transform treatment in oncology and fibrotic diseases.

 

If you would like to sign up to regular alerts from Redx Pharma, please follow this link https://www.redxpharma.com/investors/email-alerts/


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
MSCDBGDLBDGBGCC

Quick facts: Redx Pharma Plc

Price: £0.09

Market: AIM
Market Cap: £10.75 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

New Redx CEO bringing leadership and skills to 'capitalise on its great science'

Lisa Anson, the new chief executive at Redx Pharma Plc (LON:REDX), sat down with Proactive's Andrew Scott just weeks after taking on the new role. Anson was the president of AstraZeneca PLC’s (LON:AZN) UK division immediately prior to joining, while she's also held various other senior...

on 19/7/18