Date: 2015-07-02
Type of information: Capital increase
Company: Neovacs (France)
Investors:
Amount: € 7.5 million
Funding type:
Planned used: The proceeds of the capital increase will provide additional funding to Neovacs to finance the development plan of IFNα-Kinoid, including: - A phase IIb clinical trial of IFNα-Kinoid in lupus conducted in Europe, Latin America and Asia, to begin in the second half of 2015; and - A phase IIa clinical trial of IFNα-Kinoid in lupus conducted in the United States. This study is expected to begin six months after initiation of the phase IIb clinical trial of IFNα-Kinoid, and will provide additional, U.S.-specific, data to the results previously obtained in Europe.
Others: * On July 2, 2015, Neovacs, a leader in active immunotherapies for the treatment of autoimmune diseases, announced the successful closing of the 7.5 million euros share capital increase subscribed by U.S. institutional investors on June 25, 2015. Following this transaction, Neovacs’ share capital totals 4,808,446.50 euros divided into 32,056,310 shares, representing a dilution of 23.40% for existing shareholders. Maxim Group LLC acted as sole placement agent in connection with the capital increase. * On June 26, 2015, Neovacs announced that it has received commitments from three U.S. institutional investors for a capital increase totaling 7,500,000 euros. Participation in the capital increase is limited to biotechnology-focused institutional investors. Neovacs will issue a total of 7,500,000 securities at a price of one euro (premium included). Each security is composed of one ordinary share and one warrant. The warrants will be immediately detached from the shares. The capital increase was approved by the Company’s Board of Directors on June 24, 2015. It will be carried out without preferential subscription rights and reserved to the benefits of foreign institutional investors investing in biotechnology companies on a regular basis, in accordance with the eleventh resolution of the Company’s Annual General Meeting of Shareholders held on April 8, 2015. The capital increase amounts to 30.54% of the share capital of the Company to date and represents a dilution of approximately 23.40% for existing shareholders. The settlement of the new shares should take place (subject to usual market conditions) no later than July 3, 2015. One warrant will give the right to subscribe to 0.37732 ordinary share of the Company, that is a potential dilution of 10.33% for existing shareholders. The warrants shall be exercisable within 60 months of their issuance. They will not be listed on the Alternext Paris market. The warrants shall be exercisable at 1.25 euros per ordinary share. If all the warrants are exercised, the Company would receive an additional 3,537,500 euros of proceeds. The new shares, with a par value of 0.15 euro, will be of the same category as the existing shares of the Company and will be listed on the same line as the existing shares of the Company under ISIN code FR0004032746. They will carry the same dividend rights as the existing shares and will be entitled, after issuance, to all dividends declared by the Company from that date. In connection with the capital increase, the Company has agreed to a lock?up period of 90 days following the issuance of the new shares, subject to standard exemptions. The Company has further undertaken not to use the equity financing agreed in October 2014 between Kepler Chevreux and the Company, until after December 31, 2015.
Therapeutic area: Autoimmune diseases – Inflammatory diseases - Rheumatic diseases
