Ccompany aNotice – No. 16/ 2022
New Zealand Pharma changes Funding Agreement with Oberland Capital as Part of the company Refocused Sstrategy
Aimprovement reduced that outstanding note principal balance from $100 million to $50 million and removed any Restrictions on using cash
agreement includes access to an additional $75 million in additional capital after certain events
ffinancial runway expanded beyond significant pipeline milestones and in 2023
Copenhagen, DK and Boston, MA, USA 10th of May, 2022 – Zealand Pharma A/S (Nasdaq: ZEAL) (CVR No. 20045078), a biotechnology company focused on the discovery and development of innovative peptide-based medicines, today announced an amendment to its existing financing agreement with Oberland Capital Management LLC (“Oberland Capital “).
The amended terms of the Agreement read:
Zealand repurchases $50.0 million of notes at a 1.2x upfront premium.
Oberland Capital is providing Seeland with up to $75.0 million in additional capital structured as follows:
$12.5 million selected by Oberland Capital following positive glepaglutide data,
$12.5 million at a mutual option at any time and
$50.0 million will be set aside for mergers and acquisitions at the mutual discretion of the parties.
The liquidity covenant is to be completely eliminated.
Oberland Capital has the option to use 75% of any proceeds from future licenses and/or sale of other assets to pay the remaining balance under the terms of the loan agreement, excluding upfront payments from commercial asset partnerships.
The interest rate on the Secured Note is unchanged at 6% plus 3-month LIBOR or 0.25%, whichever is greater.
“Today’s agreement gives us a strong financial foundation to execute on our R&D priorities,” said Matthew Dallas, Zealand Pharma’s senior vice president and chief financial officer. “The updated agreement, along with our previously announced restructuring, extends our cash runway to 2023 and provides us with financial flexibility and capital to advance our innovative pipeline and pursue partnering opportunities for our late-stage and commercial assets.”
About Oberland Capital
Oberland Capital, a private investment firm with over $2.25 billion in committed capital since inception, is focused exclusively on investments in the global healthcare industry and specializes in flexible investment structures tailored to the specific capital requirements and strategic objectives of its transaction partners are. Oberland Capital’s wide range of financing solutions include monetizing royalties, acquiring future product sales, creating project-based financing structures, and investing in traditional debt and equity. With a combination of in-depth industry knowledge and extensive experience in structured finance, Oberland Capital’s team has a long history of creating value for its transaction partners.
About Zealand Pharma A/S
Zealand Pharma A/S (Nasdaq: ZEAL) (“Zealand”) is a biotechnology company focused on the discovery and development of peptide-based drugs. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market and three candidates are in late-stage development. In addition, licensing collaborations with Boehringer Ingelheim and AstraZeneca create opportunities for more patients to potentially benefit from the New Zealand-developed peptide testing agents currently in development.
Zealand was founded in 1998 in Copenhagen, Denmark. For more information about Zealand’s business and activities, visit http://www.zealandpharma.com.
This press release contains “forward-looking statements”, as such terms are defined in the Private Securities Litigation Reform Act 1995, as amended, which state Zealand Pharma’s expectations or forecasts of future events relating to the research, development and commercialization of pharmaceutical products. These forward-looking statements may be identified by words such as “aim”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “project”, “goal”, “intend”, “may”, “plan”, “possible”, “potential”, “will”, “would” and other words and terms of similar meaning. You should not place undue reliance on these statements or the scientific data presented. The reader is cautioned not to place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions that could cause actual results to differ materially from the expectations set forth herein and could cause some or all of these forward-looking statements to be incorrect, and which include, but are not limited to the occurrence of unwanted security events; risks of unexpected costs or delays; unexpected concerns that may arise from additional data, analysis or results obtained during clinical trials; failure to protect and enforce our data, intellectual property and other proprietary rights and uncertainties related to intellectual property claims and disputes; Regulatory authorities may request additional information or further studies, or deny or delay approval of our drug candidates, or expand product labeling; failure to obtain regulatory approvals in other jurisdictions; product liability claims; and the direct and indirect effects of the ongoing COVID-19 pandemic on our business, results of operations and financial condition. If any or all of these forward-looking statements prove to be incorrect, our actual results could differ materially and adversely from those anticipated or implied by such statements. The foregoing identifies many, but not all, of the factors that could cause actual results to differ from our expectations in the forward-looking statements. All of these forward-looking statements speak only as of the date of this press release and are based on information available to Zealand Pharma as of the date of this press release. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release. The information contained in this material regarding medicinal products (including compounds under development) is not intended as advertising or medical advice.
For more information please contact:
Investor Relations of Zealand Pharma
Zealand Pharma Media Relations