Oncimmune funded into 2021 with new EUR 8.5m facility
Immunodiagnostics company Oncimmune Holdings has secured a credit facility of €8.5m (£7.5m) with IPF Management, it announced on Friday.
The AIM-traded firm said that, under the terms of the facility, it would immediately draw down an initial €5m, with the remaining €3.5m to be drawn down within six months.
It said the facility was for a four-year term, although it could be repaid early.
The company intended to use the net proceeds from the facility to drive commercial adoption of ‘EarlyCDT Lung’, the board explained, which it aimed to accelerate following the recent announcement of successful results of the ECLS study at the World Conference on Lung Cancer 2019 in Barcelona.
It would also be used to bring other potential EarlyCDT indications to market, as well as progressing current regulatory processes for EarlyCDT Liver.
The facility would also provide business development resource for Protagen Diagnostics, for which the firm was seeing “strong demand” for its services.
Oncimmune said the facility would fund the company into 2021, giving it a “solid runway” to drive the commercialisation of its products and services.
It was interest-only for the first 12 months, with principal repayments beginning thereafter.
The facility was secured by fixed and floating charges over the assets of the group, and could be repaid at any time, subject to early repayment fees.
Oncimmune said the interest rate was 9% per annum over three-month EURIBOR, subject to a floor of 0%, and would be payable quarterly.
The company said it had also issued a warrant to IPF, exercisable for seven years, to subscribe for 2,036,015 new ordinary shares at a price of 87p, calculated as a 5% discount to the 30-day average closing share price immediately prior to the date of the facility.
“Last year we laid out our paths to value to accelerate growth and have been executing against this,” said Oncimmune Holdings chief executive officer Adam Hill.
“Fundamental to delivering our three-year forward strategy is the commercialisation of our portfolio of EarlyCDT diagnostic tests, the progression of our autoantibody service business, and helping other companies to develop their therapeutic products and target appropriate patient populations.
“By partnering with IPF, a leading growth debt provider specialising in the healthcare industry, we have strengthened our ability to deliver upon our strategic goals, enabling Oncimmune's growth at this exciting time,” Dr Hill added.