(ABM FN) Mithra has provisionally secured its financial position thanks to a capital increase and will explore strategic options for generic products.
New CEO David Horn Solomon provided a company update in a letter to shareholders on Thursday. He also announced that he had successfully reached an agreement to update the terms of the agreement with Highbridge and Whitebox.
This as a first step to secure Mithra’s financial position again.
After successful negotiations with both lenders, Mithra gains access to EUR 12.5 million from Tranche C.
In addition, the existing convertible loans with a variable conversion price have been successfully renegotiated to a new fixed conversion price of EUR 2.75. That equates to a 25 percent premium over the price for the new round of shares subscribed by Highbridge and Whitebox.
As proof of the strong support for Mithra’s long-term growth, both parties have elected to subscribe to EUR 2.5 million of new shares to be issued at an issue price of EUR 2.20, or a discount of 14 percent .
The capital increase is expected to be completed later today.
Delay
The application for Donesta to the US FDA will be submitted in the second half of the year instead of the first half. “A little delay,” said the CEO. For Europe, the timeline remains unchanged, with an application expected to be submitted in 2024.
At the end of April, Mithra’s cash position was approximately EUR 26 million. At the same time, the expected expenditure on research and development in 2023 is about 60 million euros.
The new capital, as well as access to additional cash through the amended loan facility, has strengthened Mithra’s financial position to allow the company to negotiate the US marketing rights for Donesta and to consider options for the CDMO facility.
In his letter, the CEO puts forward three short-term business priorities.
These are: securing the financial resources the company needs, the advanced discussions to conclude a license agreement for the US marketing rights for Donesta and finally the investigation of possible options to refocus on the core business.
Mithra wants to refocus on those areas where the company can compete most effectively. Other strategic options are being investigated for generic products, including a possible sale.
Bron: ABM Financial News
The editors of follow from Beursplein 5 ABM Financial News developments on the stock exchanges, and the Amsterdam stock exchange in particular, closely. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
2023-05-25 06:25:00
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