Date: 2013-12-23
Type of information: Loan
Company: Tigenix (Belgium)
Investors: Kreos Capital (UK)
Amount: € 10 million
Funding type: loan
Planned used: The funds will be used for general growth purposes as TiGenix advances the development of its expanding pipeline of cell therapy products.
Others: * On December 23, 2013, TiGenix has announced that it has signed a structured debt financing agreement of up to € 10 million with Kreos Capital, Europe\'s largest and leading provider of growth debt to high-growth companies. The funds will supplement the € 12 million in equity financing TiGenix recently secured from Gri-Cel SA, and will be used for general growth purposes as TiGenix advances the development of its expanding pipeline of cell therapy products.
\"In combination with the recent strategic investment by Gri-Cel/Grifols this funding significantly strengthens our financial position and allows us to aggressively expand our pipeline of proprietary cell therapy products,\" said Eduardo Bravo, CEO of TiGenix. \"Importantly, it enables us to independently finalize the Phase III trial with our lead product Cx601 and file for European registration, and thus capture significantly more value from a potential partnering agreement. "
The loan agreement includes three tranches at the Company\'s discretion: € 5 million in early February 2014; € 2.5 million by end of May, 2014; € 2.5 million by end of September, 2014
Term: four years
Amortization: starts at first anniversary
Interest: 12.5% fixed annual interest rate
Structure: security over certain assets; no financial covenants
Warrants: approximately 2 million warrants to be granted to Kreos, subject to shareholder approval; exercise price to equal 30-day average closing price of TiGenix share at date of issue of warrants; if shareholders do not approve the issue of warrants, Kreos is entitled to a payment of € 890,000 over 3 years
Therapeutic area: Autoimmune diseases – Inflammatory diseases - Rheumatic diseases
