Brief: Onxeo Concludes Settlement Agreement With SpePharm And SpeBio

Valerio Therapeutics SA

11/02/2020 18:26

Feb 11 (Reuters) - Onxeo SA  C4X.PA :
    * CONCLUDES A FRIENDLY SETTLEMENT AGREEMENT WITH SPEPHARM
AND
SPEBIO
    * TERMS OF AGREEMENT DO NOT AFFECT HORIZON OF ONXEO TREASURY
    * THIS AGREEMENT FULLY BALANCES ALL OF THE PROCEEDINGS IN
THE
DISPUTE BETWEEN THE PARTIES FOR MANY YEARS
    * ONXEO IMMEDIATELY SELLS ITS SHARES IN SPEBIO TO SPEPHARM
AT
THEIR NOMINAL VALUE, THEREBY TRANSFERRING ITS SHARE OF THE CASH
OF THE JOINT VENTURE AMOUNTING TO APPROXIMATELY €3.5M
    * TERMS OF AGREEMENT DO NOT AFFECT CURRENT CASH FLOW OF
COMPANY
AND ITS ESTIMATED VISIBILITY UNTIL Q3 OF 2020
    * WILL PAY 15 TO 20% OF NET CASH RECEIVED ON FUTURE
COMMERCIAL
AGREEMENTS CONCERNING ONXEO’S RESEARCH AND DEVELOPMENT ASSETS
FOR A TOTAL CUMULATIVE AMOUNT OF €6M WITHIN THE NEXT 4 YEARS
    * PROVISIONS IN CONSOLIDATED ACCOUNTS AT DECEMBER 31, 2019: 
PROVISION FOR DEPRECIATION OF EQUITY SECURITIES IN THE AMOUNT OF
3.6 MILLION EUROS, AS A RESULT OF THE SALE OF SPEBIO SHARES AT
THEIR NOMINAL VALUE
    * SETTLEMENT AGREEMENT INCLUDES IMMEDIATE COMPLETE AND FINAL
WITHDRAWAL OF THESE LAST TWO PENDING ACTIONS AS WELL AS ANY AND
ALL FUTURE CLAIMS OR CAUSES OF ACTION BETWEEN PARTIES LINKED TO
THEIR PREVIOUS DISPUTES
    * PROVISIONS IN CONSOLIDATED ACCOUNTS AT DECEMBER 31, 2019: 
PROVISION FOR RISKS OF 6 MILLION EUROS, CORRESPONDING TO THE
ADDITIONAL PAYMENTS LINKED TO THE GROUP'S FUTURE LICENSE
AGREEMENTS
    * PROVISIONS IN CONSOLIDATED ACCOUNTS AT DECEMBER 31, 2019: 
TOTAL
CHARGE WILL BE BOOKED UNDER “OTHER OPERATING INCOME AND
EXPENSES”

Source text for Eikon:  ID:nBw2g0mv8a 
Further company coverage:  C4X.PA 

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