REG - Faron Pharma. Oy - Update on financial status

Faron Pharmaceuticals OyAnnouncement

30/04/2024 14:00

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RNS Number : 6506M  Faron Pharmaceuticals Oy  30 April 2024

Faron Pharmaceuticals Oy

("Faron" or the "Company")

Inside Information: Update on financial status

·    Further cash preservation extends runway into Q3/2024

·    Understanding on conditional Waiver Extension reached with IPF,
covering the Company until end of June 2024 to conduct the planned activities
securing the further development of bexmarilimab in HMA-failed MDS

Company announcement, 30 April 2024 at 16:00 (EEST) / 14:00 (BST) / 9:00 AM
(EDT)

Inside information

 

TURKU, FINLAND / BOSTON, MA - Faron Pharmaceuticals Ltd. (AIM: FARN, First
North: FARON), a clinical-stage biopharmaceutical company pursuing a CLEVER
approach to reprogramming myeloid cells to activate anti-tumor immunity in
hematological and solid tumor microenvironments, today announces that it has
reached an understanding with its lender IPF Fund II SCA, SICAV-FIAR ("IPF"),
an extension to the waiver that it originally announced on 4 March 2024
("Waiver Extension"). With the Waiver Extension the Company continues to
finalize its preparations to secure longer term funding.

 

The Waiver Extension is conditional on certain terms, those being, among
others, (i) the minimum cash covenant being set to 6.0 million euros until 20
May 2024 and thereafter, subject to continued clinical success with the BEXMAB
trial, (ii) first decreasing to 5.5 million euros on 21 May 2024 and (iii)
then to 4.5 million euros on 12 June 2024 until a minimum equity raise of 10
million euros has been cashed in. As a part of the understanding on the Waiver
Extension terms, IPF will receive a waiver fee and additional new warrants
amounting to 500 000 euros in total with a strike price of the lower of 1.50
euros and the last 3 trading days VWAP preceding the issuance of the warrants.
The warrants are expected to be issued and related actions completed by 15 May
2024. The Waiver Extension will be valid until 27 June 2024 at maximum,
subject to terms above being followed and the Company securing subscriptions
or guarantees for a public offer in the amount of 10 million euros by 11 June
2024, unless other financing of the same value is secured prior to that.
Thereafter the minimum cash covenant will return to its normal level. On the
date of this announcement IPF holds a number of warrants, which if converted
into shares in the Company, would correspond to 1.4% of the current total
number of shares in the Company.

 

The Company has completed significant cash preservation actions during the
past few months and expects to have cash runway into Q3/2024. Faron's incoming
Chief Executive Officer, Dr. Juho Jalkanen, says: "I want to truly thank all
our vendors, employees, IPF and everybody involved. These decisions and
actions are never easy, but it really feels like a true group effort that has
come together to back the development of bexmarilimab for HMA-failed MDS. We
are deeply grateful". Dr. Jalkanen will start in his new position on 1 May
2024.

 

The Company continues its active endeavors to secure its longer-term funding
that would take bexmarilimab into a pivotal trial post the US Food and Drug
Administration's advice and partnership for commercialization. As previously
announced the Company is planning to publish initial data from the ongoing
Phase II part of the BEXMAB trial, evaluating the safety and efficacy of
bexmarilimab in combination with standard of care in patients with
hypomethylating agents refractory or relapsed myelodysplastic syndrome (MDS),
during the week commencing 20 May 2024.

 

 

For more information please contact:

Faron Pharmaceuticals

 

Investor Contact

LifeSci Advisors

Daniel Ferry

Managing Director

daniel@lifesciadvisors.com (mailto:daniel@lifesciadvisors.com)

+1 (617) 430-7576

 

ICR Consilium
Mary-Jane Elliott, David Daley, Lindsey Neville

Phone: +44 (0)20 3709 5700

E-mail: faron@consilium-comms.com (mailto:faron@consilium-comms.com)

 

Cairn Financial Advisers LLP, Nomad

Sandy Jamieson, Jo Turner

Phone: +44 (0) 207 213 0880

 

Peel Hunt LLP, Broker

Christopher Golden, James Steel

Phone: +44 (0) 20 7418 8900

 

Sisu Partners Oy, Certified Adviser on Nasdaq First North

Juha Karttunen

Phone: +358 (0)40 555 4727

Jukka Järvelä

Phone: +358 (0)50 553 8990

 

 

About Faron Pharmaceuticals Oy

Faron (AIM: FARN, First North: FARON) is a global, clinical-stage
biopharmaceutical company, focused on tackling cancers via novel
immunotherapies. Its mission is to bring the promise of immunotherapy to a
broader population by uncovering novel ways to control and harness the power
of the immune system. The Company's lead asset is bexmarilimab, a novel
anti-Clever-1 humanized antibody, with the potential to remove
immunosuppression of cancers through targeting myeloid cell function.
Bexmarilimab is being investigated in Phase I/II clinical trials as a
potential therapy for patients with hematological cancers in combination with
other standard treatments and as a monotherapy in last line solid cancers.
Further information is available at www.faron.com.

 

 

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