23 dec 2011:
"Pharming Announces €8.4 Million Convertible Bond Financing
Leiden, The Netherlands, December 23, 2011. Biotech company Pharming Group NV (“Pharming” or “the Company”) (NYSE Euronext: PHARM) today announced that it has entered into a financing of approximately €8.4 million by means of a private convertible bond with select institutional investors, which includes those shareholders that provided the Company with the recent July equity financing.
Upon closing of the transaction, Pharming will receive gross proceeds of €8 million. The bonds have a fixed conversion price of €0.12. The bonds may be redeemed in cash or shares at the option of the Company in six equal monthly tranches between February and July 2012 and carry a coupon of 8.5 percent per annum. In addition, 38.7 million warrants will be issued to the investors following the increase of Pharming’s authorized share capital. The warrants will be exercisable for 5 years and have an exercise price of €0.12.
The new funds from this transaction strengthen the balance sheet and enable the Company to extend its cash runway beyond the anticipated read out of Study 1310. As has been previously disclosed, the successful read out of this trial is associated with a $10 million milestone from Pharming’s US partner Santarus Inc, with an additional $5 million due upon acceptance of the Biologic License Application (BLA) by the FDA. Subject to these milestones, the Company will be financed into 2013.
An Extraordinary General Meeting (EGM) of Shareholders will be held on 3 February 2012, at which the Company will request approval from shareholders for an increase of the Company’s authorized share capital. Such an increase is necessary to fulfill Pharming’s obligations under the financing announced today, to address the issue of negative equity that was announced on 9 December 2011 and to maintain the flexibility required to raise additional funds for the Company if and when needed.
The current number of outstanding shares is 490 million and the current authorized share capital is 550 million. At the EGM on 3 February, 2012 the Company will request approval from its shareholders to raise the authorized share capital by 255 million shares to 805 million shares.
Details of the EGM and all related documents can be found at the Pharming website as of later today; 23 December 2012.
Roth Capital Partners acted as sole placement agent in this transaction."
Mag Roth wel advies uitbrengen? Heb eerder bij andere fondsen gezien dat een bank tijdelijk afziet van advies ivm betrokkenheid bij financiering. Aangezien aflossing deels nog moet plaatsvinden vind ik dit dubieuze gang van zaken.