Date: 2011-08-24
Type of information: Fundraising
Company: Genfit (France)
Investors: Yorkville Advisors (USA)
Amount: €5.3 million
Funding type:
Planned used: This method of financing allows Genfit to increase means at its disposal in order to, if the need arises, further advance or share GFT505 development’s up to the end of phase II clinical trials, and to maximize its value before signing a licensing agreement with a pharmaceutical company.
Others: Genfit has signed a Standby Equity Distribution Agreement with YA Global Master SPV Ltd, which is managed by the US-based alternative investment manager, Yorkville Advisors, LLC. YA GLOBAL has agreed to provide equity financing to Genfit subject to approval of the SEDA by the next Extraordinary General Meeting of GENFIT expected to be called on September 28, 2011. If approved at the Extraordinary General Meeting, at any time during the 2 year agreement, Genfit will have the option (but no obligation) at its sole and exclusive discretion, to request YA GLOBAL to subscribe to and purchase newly issued shares (per value € 0.25 each) in tranches with a maximum value of up to € 500,000 per tranche (issue premium included) or twice the average volume of transactions daily operated on Genfit’s shares during the 5 days prior to the Company’s demand. Nevertheless, the first two tranches will be limited to € 100,000. Genfit will have the option to request YA GLOBAL a maximum of one tranche per week and provided that YA GLOBAL shall in no event hold more than 4.9% of the share capital of Genfit. The total amount drawn by Genfit from YA GLOBAL pursuant to the agreement may reach a maximum of € 5 milllion (issue premium included). YA GLOBAL has contractually committed not to short sell or enter into any hedging transactions related to Genfit stock during the term of the agreement.At the current share price, the facility tranches correspond to around 191,000 new shares and to a maximum cumulated amount of approximately 1.9 million new shares. Furthermore, subject to and upon approval by the next Extraordinary General Meeting, and, latest within 3 months after the issuing of stock warrants that will be used as a support of the transaction, Genfit will also issue new shares (per value € 0.25 each) for value to € 100,000 (issue premium included) to YA GLOBAL, representing approximately 38,000 shares based on the current share price, at a price equal to the average of the daily volume-weighted share prices of the trading day when the transaction will take place. These shares will be subscribed by way of set off against a one time commitment fee due by Genfit to YA GLOBAL. To end, and always subject to and upon approval by the next Extraordinary General Meeting, YA GLOBAL will also provide Genfit with a complementary equity facility agreement of € 200,000 (issue premium included), representing approximately 76,000 shares based on the current share price, within the framework of a capital increase that should take place simultaneously to the stock warrants issuing, based on a price equal to the average of the daily volume-weighted share prices of the 5 trading days prior to the equity warrants issuing.
Therapeutic area: Cardiovascular diseases - Metabolic diseases - Liver diseases
