Type of information: Fundraising
Company: Relief Therapeutics (Switzerland)
Investors: GEM Global Yield Fund
Amount: CHF 500’000
Funding type: capital increase
Planned used: Relief Therapeutics is a clinical stage biotechnology company with a portfolio of drug candidates derived from natural human origins. Its two most promising drug candidates are aviptadil for the treatment of sarcoidosis and low dose interleukin-6 (atexakin alfa) for the treatment of peripheral diabetic neuropathy.
Aviptadil development in sarcoidosis focuses the drug on an orphan disease market, in which European regulators have indicated that a single pivotal Phase III trial would be sufficient to support approval. Atexakin alfa is the subject of an exclusive worldwide development and commercialization agreement with Merck KGaA, and has been the subject of multiple clinical trials in the past. Based on its unique mechanism of action, atexakin alfa could become the first regenerative therapeutic for peripheral neuropathy.
The funds provided by the share subscription will provide Relief with the operating cash needed to sustain itself while the company continue to pursue new business opportunities aimed at consolidating and making Relief, a healthier company.
- • On March 22, 2017, Relief Therapeutics announced that the company has completed an authorized capital increase of CHF 500’000 by issuing new registered shares of its common stock. The new registered shares have been liberated in cash and will be traded together with the existing registered shares at SIX Exchange. Under the terms of this new round of financing, GEM Global Yield Fund, currently a major shareholder, has subscribed to 50 million new registered shares of Relief at a price of CHF 0.01. The new registered shares are entitled to dividends from the date of entry of the new share capital in the register of commerce. Under the terms of this financing agreement, Relief will also issue to GEM 600 million warrants with an exercise price of CHF 0.01 exercisable for a period of 5 years.
- • On February 20, 2017, Relief Therapeutics announced a new round of financing and changes to its management structure and board of directors. The company has signed a term sheet securing CHF 500’000 of financing by issuing new shares of its common stock. The Company also announced that it will take new cost cutting measures by reducing and optimizing certain elements of its fixed overhead structure. Measures are likely to include a consolidation of offices and reductions in personnel costs.
Raffaele Petrone and Antonino Amato have resigned from the Board of Directors. Relief Therapeutics will continue with a three-member board until the next Annual General Meeting, which will take place in May 2017.
In addition to resigning from his position on the Board of Directors, Mr. Petrone has also resigned from his role as Chief Executive Officer. Mr. Gael Hedou, until now the Company’s Chief Operating Officer, will assume the role of interim-CEO effective immediately.
Therapeutic area: Rare diseases