REG - Allergy Therapeutics - Amendment to existing Facility Agreement

Allergy TherapeuticsAnnouncement

27/12/2023 12:15

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RNS Number : 9537X  Allergy Therapeutics PLC  27 December 2023

 

Allergy Therapeutics plc

("Allergy Therapeutics", the "Group" or "Company")

 

 

Amendment to existing Facility Agreement

 

 

27 December 2023 Allergy Therapeutics plc (AIM: AGY), the integrated
commercial biotechnology company specialising in allergy vaccines, announces
an amended funding agreement and related warrant instrument.

 

On 27 December 2023, the Company entered into an amendment (the "Amended
Facility") to the Facility Agreement dated 6 April 2023 with SkyGem
Acquisition Limited ("SkyGem") (an affiliate of ZQ Capital Management Limited
("ZQ Capital") and Southern Fox Investments Limited ("Southern Fox") (together
the "Lenders") as subsequently amended most recently on 26 September 2023 to
be a £15 million uncommitted facility as announced on 27 September 2023.

 

The Amended Facility provides the Company with a £40 million secured loan
facility of which £7.5 million is committed and £32.5 million is
uncommitted. The Amended Facility is available to drawdown from 15 January
2024 until 15 January 2026 with interest payable semi-annually at 12 per cent.
per annum and a repayment date of 15 January 2027.

 

The Company has also entered into an agreement on 27 December 2023 (the
"Warrant Instrument") under which, subject to shareholder approval, the
Company will issue warrants to the Lenders following each drawdown under the
Amended Facility entitling the holders to subscribe for new ordinary shares at
a price of 4 pence per share. The entitlement to warrants will be 25 warrants
for each £1 drawn down under the Amended Facility with a maximum of
1,000,000,000 warrants. The warrants will be exercisable in whole or in part
from 1 July 2024 until 15 January 2027.

 

The Company intends to give notice of a general meeting to approve the issue
of warrants under the Warrant Instrument no later than 1 July 2024.

 

Related Party Transaction

 

The Amended Facility is deemed to be a related party transaction pursuant to
Rule 13 of the AIM Rules for Companies by virtue of ZQ Capital (together with
its affiliates, SkyGem, ZQ Capital and Zheqing (Simon) Shen) and Southern Fox
being substantial shareholders of the Company (within the meaning of the AIM
Rules for Companies).

 

The Directors of the Company who are independent of the Amended Facility,
being all of the Directors save for Zheqing (Simon) Shen and Anthony Parker
consider, having consulted with its nominated adviser Panmure Gordon, that the
terms of the Amended Facility are fair and reasonable insofar as the Company's
shareholders are concerned.

 

For further information on the Company, please visit the
website: www.allergytherapeutics.com (http://www.allergytherapeutics.com/) .

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulations.

 

 

For further information, please contact:

 

Allergy Therapeutics

Manuel Llobet, Chief Executive Officer

Shaun Furlong, Chief Financial Officer

+44 (0)1903 845 820

 

Panmure Gordon (Nominated Adviser and Broker)

Emma Earl, Mark Rogers, Freddy Crossley, Corporate Finance

Rupert Dearden, Corporate Broking

+44 (0)20 7886 2500

 

ICR Consilium

Mary-Jane Elliott / David Daley / Davide Salvi

+44 (0)20 3709 5700

allergytherapeutics@consilium-comms.com
(mailto:allergytherapeutics@consilium-comms.com)

 

 

Notes for editors:

 

About Allergy Therapeutics

 

Allergy Therapeutics is an international commercial biotechnology company,
headquartered in the UK, focussed on the treatment and diagnosis of allergic
disorders, including aluminium free immunotherapy vaccines that have the
potential to cure disease. The Group sells proprietary and third-party
products from its subsidiaries in nine major European countries and via
distribution agreements in an additional ten countries. Its broad pipeline of
products in clinical development includes vaccines for grass, tree, house dust
mite and peanut. For more information, please see www.allergytherapeutics.com
(http://www.allergytherapeutics.com) .

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