Date: 2018-01-16
Type of information: Private placement
Company: Arbutus Biopharma (Canada)
Investors: Roivant Sciences (CH - USA)
Amount: US$116.4 million
Funding type: private placement
Planned used:
- Arbutus intends to use the proceeds to further develop and advance its clinical and preclinical HBV pipeline programs.
Others:
- • On January 16, 2018, Arbutus Biopharma announced the closing of the issue and sale of 664,000 series A participating convertible preferred shares of Arbutus (Preferred Shares) to Roivant Sciences for gross proceeds to Arbutus of US$66.4 million (Tranche 2). Tranche 2 closed on January 12, 2018 following receipt of the approval of Arbutus’ shareholders on January 11, 2018. The Tranche 2 closing represents the second of two tranches of Preferred Shares issued to Roivant and, together with the previously announced Tranche 1 closing, comprise the previously announced US$116.4 million strategic investment by Roivant in Arbutus.
- • On October 16,2017, Arbutus Biopharma and Roivant Sciences announced the closing of the issue and sale of 500,000 convertible series A preferred shares by Arbutus to Roivant for gross proceeds to Arbutus of US$50 million (Tranche 1). The Tranche 1 closing represents the first of two tranches of Preferred Shares comprising the previously announced US$116.4 million strategic investment by Roivant in Arbutus. The remaining amount of US$66.4 million (Tranche 2) is expected to close promptly upon satisfaction of customary closing conditions including regulatory and shareholder approvals, as applicable, under Canadian securities law.
- • On October 2,2017, Arbutus Biopharma announced that it has signed a share purchase agreement with Roivant Sciences for the sale of convertible preferred shares (“Preferred Shares”) for gross proceeds of $116.4 million. Following the close of this transaction, Roivant and Arbutus intend to explore working together to leverage Roivant’s infrastructure to accelerate more efficient development of Arbutus’ HBV drug pipeline. Arbutus also anticipates working with Roivant to expand its geographic footprint in HBV drug development and to maximize the value of Arbutus’ non-HBV assets, including Arbutus’ LNP and GalNAc platforms for the delivery of novel therapeutic modalities including RNA interference, mRNA, and gene editing technologies. Roivant’s investment will take the form of preferred shares which will be convertible into common shares at a conversion price of $7.13 per share (a 15% premium to the closing stock price on September 29, 2017). The preferred shares plus an amount equal to 8.75% per annum compounded annually will be subject to mandatory conversion into common shares on the fourth anniversary of the closing date. Roivant has agreed to a four year lock-up period for this investment and its existing holdings in Arbutus. The initial investment of $50.0 million is expected to close shortly, and the remaining amount of $66.4 million is expected to close promptly upon satisfaction of customary closing conditions including regulatory and shareholder approvals, as applicable, under applicable Canadian securities law.
Therapeutic area: Infectious diseases
Is general: Yes
