Brief: Nicox Amends Debt Agreements For Outstanding Bonds

Nicox SA

28/02/2024 06:42

Feb 28 (Reuters) - Nicox SA  ALCOX.PA :
    * NICOX RESTRUCTURES DEBT, STREAMLINES OPERATIONS TO EXTEND
CASH
RUNWAY AND FOCUS RESOURCES ON NCX 470 PIVOTAL TRIAL
    * CASH RUNWAY EXTENDED TO NOVEMBER 2024
    * SIGNED AN AGREEMENT IN PRINCIPLE TO AMEND ITS DEBT
AGREEMENTS
WITH FUNDS AND ACCOUNTS MANAGED BY BLACKROCK, INC. AND ITS
AFFILIATES
    * DEBT RESTRUCTURING TOGETHER WITH REDUCTION IN OPERATING
COSTS
ALLOWS FOR INTEREST-ONLY PERIOD ON ENTIRE OUTSTANDING DEBT TO BE
CONTINUED TO 30 SEPT 2024, EXTENDING COMPANY’S CASH RUNWAY TO
NOV 2024
    * SUCH INTEREST ONLY PERIOD WOULD BE FURTHER EXTENDED
PROPORTIONALLY WITH FUTURE INCREASES IN CASH RUNWAY, PROVIDED
THAT COMPANY RAISES AT LEAST €3 MLN IN EQUITY FINANCING BY 30
SEPT 2024, WHICH WOULD EXTEND CASH RUNWAY INTO Q1 2025
    * UNDER THE CURRENT BOND AGREEMENT, NICOX WAS DUE TO BEGIN
REPAYING THE AMORTIZING BOND TO KREOS FROM 1 FEBRUARY 2024
    * NICOX WILL MAKE PAYMENTS OF INTEREST ONLY ON THE ENTIRE
DEBT TO
KREOS UNTIL 30 SEPTEMBER 2024, BASED ON A CASH RUNWAY UNTIL
NOVEMBER 2024
    * PROVIDED THAT NICOX RAISES AT LEAST €3 MILLION IN EQUITY
BY 30
SEPT 2024, THE INTEREST-ONLY PERIOD WILL BE EXTENDED EACH TIME
CASH RUNWAY IS INCREASED, AND NO LATER THAN 31 DEC 2025
    * THE NON-AMORTIZING BONDS ARE CURRENTLY DUE TO BE REPAID ON
1
JANUARY 2026
    * COMPANY PLANNING TO REDUCE OPERATIONAL COSTS TO FOCUS ON
ACTIVITIES RELATED TO DENALI PHASE 3 TRIAL ONLY, AS SUCH,
COMPANY AND ITS ITALIAN SUBSIDIARY WILL BE REDUCING NUMBER OF
EMPLOYEES
    * THE DEVELOPMENT TEAM IN THE U.S., CONSIDERED ESSENTIAL FOR
THE
COMPLETION OF THE DENALI TRIAL, IS NOT IMPACTED BY THESE CHANGES

Source text for Eikon:  urn:newsml:reuters.com:*:nGNE6j9395
Further company coverage:  ALCOX.PA 

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