Pharming redeems part of EUR4.8m convertible bond.
M2 EQUITYBITES-January 6, 2012-Pharming redeems part of EUR4.8m convertible bond(C)2012 M2 COMMUNICATIONS http://www.m2.com
Biotech company Pharming Group NV Euronext: PHARM) today announced that it has redeemed part of its EUR8.4m convertible bond.
A total of 38.9 million shares were issued to the bondholders under the terms and conditions of the bond, serving as a pre-instalment for the 6 February 2012 redemption and interest payment, with the balance to be held for subsequent redemptions, if elected to be paid in shares.
It is expected that the shares will be admitted to listing and trading on Euronext Amsterdam on 9 January 2012.
Pharming will redeem the bond on a month by month basis such that the bond will be redeemed in full on 15 July 2012. Pharming can decide at its discretion to redeem the bond and pay the interest due, by means of monthly equity tranches or cash payments. This is subject to the approval of the proposed increase of the company's authorised share capital during the extraordinary general meeting to be held on 3 February 2012,
The company said that the new funds from this transaction strengthen its balance sheet and enable it to extend its cash runway beyond the anticipated read out of Study 1310. The successful read out of this trial is associated with a USD10m milestone from Pharming's US partner Santarus Inc, with an additional USD5m due upon acceptance of the Biologic License Application (BLA) by the FDA. Subject to these milestones, the company will be financed into 2013.
As of today, the number of outstanding shares of the company has reportedly increased to 528,995,524.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jan 6, 2012|
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