£5 million short term loan agreement

RNS Number : 9576H

Redx Pharma plc

30 March 2020

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN

For immediate release

Redx Pharma plc

 ("Redx" or "the Company")

Short-term debt funding of £5m secured from entities controlled by Redmile Group, LLC ("Redmile")

Alderley Park, 30 March 2020 Redx Pharma (AIM: REDX), the drug discovery and development company focused on cancer and fibrosis is pleased to confirm that further to the announcement on 28 February and the subsequent announcement by Redmile on 13 March, it has entered into a £5 million short term loan agreement (the "Loan") with one or more entities controlled by Redmile (the "Lender").

The principal terms of the Loan are as follows:

· £5 million will be borrowed in full in a single drawdown;

· the Loan is secured by fixed and floating charges over all assets of the Group and its subsidiaries, with the exception of the RXC006 and GI-Targeted ROCK research programmes;

· interest is payable at 10 per cent. per annum from the date of signing. From and including the date 3 months from signing, the interest rate will be 20 per cent. per annum, with all interest to be paid at the same time as the Loan is repaid;

· the Loan (together with all unpaid interest) is repayable in full on 31 August 2020, but may become payable earlier in the event, inter alia, of default;

· in the event, inter alia, of any sale of all, or substantially all, of the assets or more than 50 per cent. of the ordinary shares of the Company, or a merger or similar reorganisation (otherwise than in favour of the Lender and/or any person acting in concert with the Lender) of the Company, the Loan is repayable, without premium or penalty, together with any interest due;

· standard representations and warranties have been provided to Redmile upon signing the Loan agreements.

The Company intends to draw down the Loan immediately after the conditions to drawdown are satisfied and the proceeds will serve to further extend the Company's cash runway into the third quarter of 2020 and will be used to augment general working capital. 

As Redmile holds 48.2% of the Company's issued ordinary shares the Loan constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules.  The Board consider that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned, having consulted with Cantor Fitzgerald Europe, the Company's nominated adviser.

The Board will make further announcements on funding as appropriate.

For further information, please contact:

Redx Pharma Plc	T: [phone]
Lisa Anson, Chief Executive Officer
James Mead, Chief Financial Officer
Cantor Fitzgerald Europe (Nominated Adviser & Joint Broker)	T: [phone]
Phil Davies
WG Partners LLP (Joint Broker and Financial Adviser)	T: [phone]
Claes Spång/Chris Lee/David Wilson
FTI Consulting	T: [phone]
Simon Conway/Ciara Martin

About Redx Pharma Plc 

Redx is a UK based biotechnology company whose shares are traded on AIM ( AIM:REDX ). Redx's vision is to become a leading biotech focused on the development of novel precision medicines that have the potential to transform treatment in oncology and fibrotic diseases.

If you would like to sign up to regular alerts from Redx Pharma, please follow this link https://www.redxpharma.com/investors/email-alerts/

Notices related to financial adviser

Cantor Fitzgerald Europe, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for Redx Pharma and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Redx Pharma for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

WG Partners LLP, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for Redx Pharma and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Redx Pharma for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

 

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