REGULATED INFORMATION – PRIVILEGED INFORMATION
20 July 2022, 07:00 CET
Company’s cash trail extended to third quarter 2023
Ghent, Belgium – 20 Julily 2022 – Sequana Medical SA (Euronext Brussels: SEQUA) (there “Company” Where “Sequana medicalI“), a pioneer in the treatment of drug-resistant fluid overload in liver disease and heart failure, today announces that it has entered into a €10 million secured loan agreement with Kreos Capital VI (UK) Limited (“Kreos”). The loan proceeds will be used to fund general working capital requirements. The loan facility agreement allows the Company to request, on an uncommitted basis, additional loans of up to €10 million at a later date.
Ian Crosbie, CEO of Sequana Medical, said: “We are delighted to execute this loan facility which extends our cash trail to the third quarter of 2023 and will help us achieve key milestones for both alphapump® and DSR®, our innovative therapies for drug-resistant fluid overload in liver disease and heart failure respectively. Our mission is to dramatically improve treatment options for these large and growing patient populations who today have limited treatment options. We are very pleased to have the support of Kreos Capital, one of the leading providers of growth debt for life science and healthcare companies.
Maurizio PetitbonGeneral partner at Kreos Capital, added: “We have been impressed with Sequana Medical’s innovative approach to developing effective treatments for the large potential markets for drug-resistant fluid overload and we are proud to provide this capital to help them pursue the development and commercialization of these important therapies.
About the Kreos Loan Facility Agreement
The credit facility, available until September 30, 2022 for a minimum amount of EUR 1,500,000, matures on September 30, 2025. During the first 6-month period from the first drawing (extendable by mutual agreement) , the Company will only pay interest, the loans then being amortized in principal and interest in equal monthly installments until maturity. Loans under the facility bear interest at a fixed rate of 9.75% per annum. A number of fees will be payable to Kreos, consisting in particular of a transaction fee equal to 1.25% of the total amount of the loan facility, and an end-of-loan payment, payable upon final repayment of the loan concerned, equal at 1.25% of the drawn amount. Kreos shall have the right to appoint a censor to attend meetings of the board of directors of the Company without the right to vote.
Subject to the approval of the extraordinary general meeting of shareholders of the Company, Kreos will also receive, free of charge, subscription rights for new shares, with a duration of seven years, for a price of (i) aggregate issue of EUR 650,000, at an issue price per share of EUR 5.31, based on the volume-weighted average price of the Company’s shares during a period of 30 trading days preceding the signing of the loan facility, and (ii) an aggregate issue price of up to EUR 225,000 (pro rata to drawings under the facility) at an issue price per share based on the volume-weighted average trading price of shares of the Company for a period of 30 trading days preceding the drawdowns concerned. If shareholders do not approve the subscription rights, a fee will be payable to Kreos to ensure Kreos an aggregate cash yield of at least 1.35x on the total amount of the loan facilities.
The loans are secured against the Company’s bank accounts, receivables and movable assets, including intellectual property rights. The loan agreement contains a change of control clause and requires the approval of this clause by the general meeting of shareholders of the Company. The Loan Agreement does not contain financial covenants, but it does contain other customary restrictions on the business of the Company and its subsidiaries (such as limitations on future assignments, (additional) financial indebtedness, security and acquisitions subject to certain exclusions and limitations) and on the Company’s ability to distribute dividends while the loans are outstanding.
For more information please contact:
Optimal strategic communications
About Kreos Capital
Kreos Capital is the leading provider of growth debt in Europe and Israel, supporting high growth companies at every stage of their life cycle. Kreos targets investments across all areas of the technology and healthcare sectors and to date has committed over €3.9 billion in more than 690 portfolio company transactions, across 17 countries.
About Sequana Medical
Sequana Medical NV is a pioneer in the treatment of drug-resistant fluid overload, a serious and common clinical complication in patients with liver disease and heart failure. Fluid overload is a well-known problem in these growing diseases, causing serious problems for the large number of patients for whom current medications are no longer effective. These patients can have up to 15 liters of extra fluid in their bodies, leading to major medical issues including increased mortality, repeated hospitalizations, severe pain, labored breathing, and reduced mobility that severely affect daily life. .
alphapump® and DSR® are Sequana Medical’s proprietary approaches that work with the body to remove this excess fluid, delivering major clinical and quality of life benefits to patients and reducing costs to healthcare systems. Sequana Medical is listed on Euronext Brussels (Ticker: SEQUA.BR) and is headquartered in Ghent, Belgium. For more information, please visit www.sequanamedical.com.
Important Regulatory Disclaimers
The alphaThe pump® system is not currently approved in the United States or Canada. In the United States and Canada, the alphaThe pump system is currently under clinical investigation (POSEIDON study) and is being studied in adult patients with refractory or recurrent ascites due to cirrhosis. For more information on the POSEIDON clinical study, see www.poseidonstudy.com. DSR® Therapy is still under development and it should be noted that any statements regarding safety and efficacy derive from ongoing preclinical and clinical studies which have not yet been completed. DSR therapy is not currently approved for clinical research in the United States or Canada. There is no connection between the DSR therapy and the ongoing investigations with the alphapump system in Europe, USA or Canada.
To note: alphapump® is a registered trademark. DSR® and alphapump DSR® are registered trademarks in Benelux, China, EU, UK and Hong Kong.
This press release may contain predictions, estimates or other information that could be considered forward-looking statements. These forward-looking statements are not guarantees of future performance. These forward-looking statements represent Sequana Medical’s current judgment of what the future holds, and are subject to risks and uncertainties that could cause actual results to differ materially. Sequana Medical expressly disclaims any obligation or undertaking to issue updates or revisions to the forward-looking statements contained in this press release, except as specifically required by law or regulation. You should not place undue reliance on forward-looking statements, which reflect the views of Sequana Medical only as of the date of this press release.
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