PROMETIC ENTERS INTO BINDING AGREEMENT TO SECURE $25 MILLION FOLLOW-ON FINANCING FROM STRUCTURED ALPHA LP, AN AFFILIATE OF THOMVEST ASSET MANAGEMENT INC.
- Total investment in Prometic from Peter J. Thomson’s Toronto-based investment vehicle amounting to $85 million
- $25 Million debt financing to bear interest of 8.5% per annum and repayable in July, 2022
- No material additional security to be granted by Prometic over and beyond the existing debt package
- 10,600,407 warrants to be granted at an exercise price of $3.70, a premium of 70% to the most recent Prometic share price close
- Aggregate proceeds from exercise of warrants to offset the total amount repayable under the debt instrument
' LAVAL, QUEBEC, CANADA – March 24, 2017 – Prometic Life Sciences Inc. (TSX: PLI) (OTCQX: PFSCF) (“Prometic” or the “Corporation”) announced today that it has entered into a binding agreement to secure a follow-on investment from Structured Alpha LP, an affiliate of Peter J. Thomson’s investment firm, Thomvest Asset Management Inc., consisting of a $25 million loan (the “Loan”).
As partial consideration for the Loan, Prometic will grant Structured Alpha LP 10,600,407 warrants with an exercise price of $3.70 per common share, a premium of 70% to yesterday’s closing share price, the whole subject to obtaining TSX approval and closing the definitive documentation, which the parties expect to achieve over the next 30 days.
“Prometic is now only a few months away from officially becoming a fully integrated biopharmaceutical company with its first commercially approved drug, plasminogen, expected to be launched in Q4 this year”, stated Mr. Pierre Laurin, President and Chief Executive Officer of Prometic Life Sciences Inc.
“It is key for us to remain sufficiently capitalized to execute on our corporate initiatives and clinical programs as we continue delivering on the expected catalysts events. We intend to fully leverage this follow-on investment to generate value for all our shareholders”, added Mr. Laurin.
Commenting on the additional follow-on investment in Prometic, Stefan Clulow, Managing Director and Chief Investment Officer of Thomvest Asset Management Inc., said:
"We see 2017 as a transformational year for Prometic. The commercialization of the company's first plasma-derived therapeutic will validate its proprietary PPPS platform and should focus the market's attention on the therapeutic pipeline it enables. Prometic is demonstrating how good strategy, innovation and execution can be combined to bring cost-effective novel therapies to patients while creating value for all stakeholders. We are proud to support Mr. Laurin and the rest of the Prometic team in their efforts.”
The Loan shall be secured by Prometic’s assets, excluding its patent portfolio. The redemption value of the Loan implies a compounded annual interest rate of 8.5%. No interest or principal shall be required to be repaid prior to July 31, 2022.
As part of this transaction, Prometic shall grant Structured Alpha LP a warrant to purchase 10,600,407 common shares at an exercise price of $3.70 per common share with a term expiring in October, 2023. The proceeds received by Prometic from the aggregate exercise of all of the warrants would be sufficient to repay the Loan in its entirety. No material additional security or covenants have been granted to Structured Alpha LP, over those already in place by the current original issue discount notes.
About Thomvest Asset Management Inc. And Structured Alpha LP
Thomvest Asset Management Inc. is a Toronto-based investment management firm controlled by Peter J. Thomson. Structured Alpha LP is an affiliate of Thomvest Asset Management Inc. that makes structured investments in companies that leverage disruptive technologies and business models to pursue high-growth commercial opportunities. We are committed to the success of our entrepreneur partners. The capital we invest is our own, enabling us to be more creative, flexible, strategic and patient than most investors. It takes time to build great companies and Thomvest and its affiliates are committed to supporting its entrepreneurs throughout their journey. To learn more about Thomvest, please visit us at www.thomvest.com'
Jim |
