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Zeeland Pharma Amended Funding agreement with Oberland Capital as Pthe art of business Rconcentrate Sstrategy
Arepair reduced the exceptional main note balance $100 million to $50 million and delete any restrictions on the use of cash
The deal includes access to a supplement $75000000 in additional capital following specific events
Ffinancial track widened past major pipeline milestones and in 2023
Copenhagen, DK and Boston, MA, USA May 10, 2022 – Zealand Pharma A/S (Nasdaq: ZEAL) (CVR-no. 20045078), a biotechnology company focused on the discovery and development of innovative peptide-based drugs, today announced an amendment to its existing funding agreement with Oberland Capital Management LLC (“Capital of Oberland”).
The amended terms of the agreement are as follows:
Zealand to repurchase $50.0 million of note principal with a 1.2x prepayment premium.
Oberland Capital will provide Zealand with up to $75.0 million in additional capital structured as follows:
The liquidity covenant must be completely abolished.
Excluding any initial payments from Partnerships on Commercial Assets, Oberland Capital will have the option to apply 75% of any proceeds from future licenses and/or the sale of other assets to repay the remaining balance in accordance with the terms of the loan agreement.
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 solid financial foundation to be able to deliver on our R&D priorities,” said Matthew Dallas, senior vice president and chief financial officer of Zealand Pharma. “The updated agreement, along with our previously announced restructuring, extends our cash runway through 2023 and provides us with financial and capital flexibility to advance our innovative pipeline as well as pursue partnership opportunities for our assets. late-stage and commercial.”
About Oberland Capital
Oberland Capital, a private investment firm with over $2.25 billion in capital commitments since inception, focuses exclusively on investing in the global healthcare sector and specializes in investment structures flexible solutions tailored to meet the specific capital needs and strategic objectives of its transaction partners. Oberland Capital’s wide range of financing solutions include monetizing royalty streams, acquiring future revenue from products, creating project-based financing structures, and investing in traditional debt and equity. With a combination of deep industry knowledge and extensive experience in structured finance, the Oberland Capital team has a 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 reached the stage of clinical development, of which two have reached the market and three candidates are in late-stage development. Additionally, in-licensing collaborations with Boehringer Ingelheim and AstraZeneca create opportunities for more patients to potentially benefit from the experimental Zeeland-invented peptide agents currently in development.
Zealand was founded in 1998 in Copenhagen, Denmark. For more information on Zealand’s business and activities, please visit http://www.zealandpharma.com.
This press release contains “forward-looking statements”, as defined in the Private Securities Litigation Reform Act of 1995, as amended, which provide Zealand Pharma’s expectations or forecasts regarding future events relating to research, development and marketing of pharmaceuticals. These forward-looking statements can be identified by words such as “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “anticipates”, “target”, “has the intention to”, “could”, “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. Readers are cautioned not to rely on these forward-looking statements. These forward-looking statements are subject to risks, uncertainties and inaccurate assumptions, which may cause actual results to differ materially from the expectations set forth in the present and may render any or all of these forward-looking statements incorrect, and which include, but are not limited to, the occurrence of adverse safety events; risks of unforeseen costs or delays; unexpected concerns that may arise from e 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 require additional information or additional studies, or may not approve or delay the approval of our drug candidates or product labeling expansions; inability to obtain regulatory approvals in other jurisdictions; product liability claims; and the direct and indirect impacts 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 incorrect, our actual results could differ materially and adversely from those anticipated or implied by these statements. The foregoing sets forth many, but not all, factors that could cause actual results to differ from our expectations in any forward-looking statement. All such 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 do not undertake to update these forward-looking statements to reflect events or circumstances that occur after the date hereof. Information regarding pharmaceutical products (including compounds under development) contained herein is not intended to be advertising or medical advice.
For more information, please contact:
Zealand Pharma Investor Relations
Zealand Pharma Media Relations