Moberg Pharma enters financing agreement of up to 216 million SEK for further investments in MOB-015.
Moberg Pharma has entered into a convertible note agreement with Nice & Green S.A., contingent on an authorization at an Extraordinary General Meeting. In December 2019, the company reported that the primary endpoint for MOB-015 was met in the North American phase 3 study. The evaluation of the study results showed that the rapid and high antifungal effect of MOB-015 is world leading, but that dosing may be optimized, states the company. The agreement with N&G enables Moberg Pharma to pursue this potential and conduct an additional clinical study, depending on the outcome of the EU study expected at the end of Q2 2020.
“The agreement provides Moberg Pharma access to flexible financing at a reasonable cost under current market conditions. As part of the agreement, Nice & Green will introduce Moberg Pharma to its wide network of biotech investors in Switzerland, Germany and France,” says Mark Beveridge, VP Finance at Moberg Pharma.
A nominal value of up to SEK 216 million
The financing is provided by N&G, a Swiss specialty investor focusing on financing solutions for public biotech and cleantech growth companies. According to the financing agreement, N&G has committed to subscribe for convertible notes (CN) with a nominal value of up to SEK 216 million, in tranches of initially SEK 3 million per month for the first six months and thereafter, depending on market conditions, with possibility to increase to SEK 6 million per month.
“This financing can cover the company’s capital requirements to product registration following a positive outcome in the European phase 3 study. It can also secure financing for an additional study if needed before registration. We are continuing our focus on MOB-015 and look forward to the topline data from the EU study at the end of the second quarter. We are fully committed to creating the future market leader in nail fungus treatments,” says Anna Ljung, CEO of Moberg Pharma.
To facilitate the financing agreement, the company’s largest shareholder, Östersjöstiftelsen, has entered into an agreement to lend N&G shares in Moberg Pharma. The share loan is collateralized by the CNs and by assets in Moberg Pharma. Moberg Pharma will pay a market-aligned fee to Östersjöstiftelsen for providing the share loan.
Photo of Anna Ljung: Moberg Pharma