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Mendus announces financing commitments totaling up to 250 MSEK

The company has entered into a binding agreement for a financing commitment with Negma Group (of up to 200 MSEK) as well as a binding commitment letter to receive a shareholder loan (up to 50 MSEK) with its existing shareholder Van Herk Investments.

The financing commitments will allow the company to reach its next clinical read-outs from the ongoing ADVANCE II and ALISON trials, to prepare for next clinical trials and to establish commercial manufacturing for its lead program DCP-001, it states.

”The financing will support Mendus in realizing the survival endpoints and read-outs of the ADVANCE II trial and significant additional near-term clinical value inflection points, while also allowing us to further strengthen the manufacturing capabilities supporting the long-term success of our company,” says Erik Manting, Chief Executive Officer of Mendus.

The commitment letter with Van Herk Investments is valid until June 30, 2023.

Read more: Immunicum announces corporate rebranding and name change

Up to 200 million SEK in convertible bonds

Negma has committed to subscribe to up to 200 million SEK in convertible bonds. Financing is available in tranches of up to SEK 10 million over a period of 30 months following closing of the transaction. Executing individual tranches and the timing of such tranches is at the sole discretion of the company, subject to certain terms and conditions. The convertible bonds carry a zero coupon and will be issued at a subscription price corresponding to their par value. The conversion price will be determined as 92% of the second lowest closing volume weighted average share price (VWAP) of the 10 consecutive trading days preceding the issuance of conversion request by Negma.

The company will inform the market regarding issuance and conversion of convertible bonds into shares in accordance with applicable regulations. The commitment from Negma is subject to a definitive agreement being entered into between the parties, which is estimated to take place in the forthcoming days, states Mendus.

Photo of Mendus’ management team