Mendus AB (“Mendus” publ; IMMU.ST), a biopharmaceutical company fighting tumor recurrence through cellular immunotherapies, today announces that it has entered into a binding agreement for a funding commitment of up to $200 million of SEK (“Transaction”) with Negma Group Ltd, a leading financial institution based in Paris (“Negma”). The Company has also entered into a binding letter of commitment to receive a shareholder loan of up to SEK 50 million with its existing shareholder Van Herk Investments.
The funding commitments will allow the Company to achieve its next clinical readouts from the ongoing ADVANCE II and ALISON trials, prepare for upcoming clinical trials, and establish the pivotal phase and commercial manufacturing of its lead DCP-001 program.
Based on the commitment letter signed with Van Herk Investments, the Company is entitled to receive from Van Herk Investments a shareholder loan up to a maximum amount of SEK 50 million at standard market conditions. The letter of commitment is valid until June 30, 2023.
Negma has committed to subscribe up to SEK 200 million in convertible bonds. The financing is available in tranches of up to SEK 10 million over a period of 30 months following the closing of the Transaction. The execution of individual tranches and the timing of such tranches are at the sole discretion of the Company, subject to certain terms and conditions. The convertible bonds carry a zero coupon and will be issued at a subscription price corresponding to their nominal value. The conversion price will be determined at 92% of the second lowest closing volume-weighted average price (VWAP) of the 10 consecutive trading days preceding the issuance of the conversion request by Negma. The Company will inform the market of the issue and conversion of bonds convertible into shares in accordance with applicable regulations. Negma’s engagement is conditional on the parties reaching a definitive agreement, which is expected to occur in the coming days.
Mendus plans to announce updated results and survival results from the ADVANCE II clinical trial evaluating its lead cancer program DCP-001 in the maintenance treatment of acute myeloid leukemia (AML) in the fourth quarter 2022. Positive interim results reported in May 2022 demonstrated a positive outcome on the study’s primary endpoint of measurable residual disease (MRD), including the first clear signals that MRM responses are translating into a relevant survival benefit. Mendus will also present early clinical results from the ALISON trial evaluating DCP-001 in ovarian cancer at the European Society for Gynecological Oncology (ESGO) conference, October 27-30, and is gearing up for an upcoming clinical trial in gastrointestinal stromal tumors with its intratumoral immune primer ilixadencel.
“We are delighted to have secured strong and flexible financing and to have been able to attract an experienced investor with Negma Group, as well as the additional commitment of our largest shareholder Van Herk Investments,” commented Erik Manting, PhD, CEO. of Mendus. “The funding will help Mendus achieve survival endpoints and readouts from the ADVANCE II trial and additional important inflection points of near-term clinical value, while allowing us to further build manufacturing capabilities supporting the long-term success of our company.”
“We are delighted to collaborate with Mendus. The Company already has a strong investor base and is pursuing clearly differentiated and innovative therapeutic strategies in areas with significant unmet medical needs in oncology. Negma is pleased to provide a flexible financing solution to help the company achieve its next steps,” commented jointly Anthony de Rauville, CIO and Sophie Villedieu, Associate ECM of Negma Group.
Van Lanschot Kempen NV (Kempen & Co) acted as financial advisor for the transaction with Negma and Delphi acted as legal advisor for the transaction with Negma and the commitment letter from Van Herk Investments.
This information is the information that the Company is required to make public pursuant to the EU Market Abuse Regulation (No. 596/2014). The information was submitted for publication through the contact persons listed below on August 26, 2022, 7:00 a.m. CEST.
FOR MORE INFORMATION PLEASE CONTACT:
Chief executive officer
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Serious investor relations
Telephone: +1 212-362-1200
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Telephone: +49 160 9352 9951
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ON MENDUS AB (PUBL)
Mendus is dedicated to changing the course of cancer treatment by addressing tumor recurrence and improving survival outcomes for cancer patients, while preserving quality of life. We leverage our unparalleled expertise in allogeneic dendritic cell biology to develop an advanced clinical pipeline of novel, ready-to-use cellular immunotherapies that combine clinical efficacy with a mild safety profile. Based in Sweden and the Netherlands, Mendus is listed on Nasdaq Stockholm under the symbol IMMU.ST. http://www.mendus.com/