Pharma Equity Group Announces New Issuance of Convertible Loans

Pharma Equity Group's New Convertible Loans Initiative

The Board of Directors of Pharma Equity Group has reached an important decision regarding the issuance of convertible loans. This strategic move aims to empower the company by providing it with the necessary financial resources to enhance its operational capabilities and future growth potential.

Details of the Convertible Loans

The newly approved convertible loans will allow Pharma Equity Group to borrow up to DKK 10,892,187. This funding is particularly significant as it follows the repayment of previous convertible loans, reflecting a proactive approach to managing the company's finances. These repaid loans include DKK 3,157,895 issued earlier in the year and DKK 5,842,500 from mid-year, alongside a utilized credit facility of DKK 1,502,917.

Main Terms and Conditions

Pharma Equity Group has outlined several key terms regarding the new convertible loans:

• The lender can exercise their right to convert the loan into shares for 30 days, commencing 23 months post-closure of the loan, known as the "Exercise Period".
• These loans will incur an interest rate of 10% per annum, remaining unamortized until the end of the Exercise Period. Following this, the company will redeem the bonds, including accrued interest, within 60 days. There is an option to extend the loan period by an additional 12 months if necessary.
• The conversion price is set at DKK 0.15 for one new share, with a nominal value of DKK 0.10.
• If the conversion right is not utilized, the loan will be settled in shares at the conversion price.

Impact on Share Capital

The issuance of convertible loans will result in new shares which are offered without pre-emptive rights to existing shareholders. These shares will be assimilated into the existing share structure, granting the same rights as currently listed shares. Following successful conversion, the increase in share capital from this decision is projected to be nominally DKK 13,271,072.

Terms for the Repaying Convertible Loans

In addition to the new issuance, the terms for the preceding loans that are being repaid are also noteworthy. The convertible loans amounting to DKK 3,157,895 and DKK 5,842,500 have been designed to facilitate a smooth financial transition:

• Both loans are classified as subordinated, meaning they hold a lower repayment priority compared to other creditor claims.
• Like the new loans, these loans also offer a 30-day conversion right commencing 23 months after their issue date.
• Interest on these loans is pegged at 3.25% per quarter, with no repayment requirement until after the Exercise Period.
• There is a possibility for the company to repay the loan, including interest, in shares instead of cash.
• The conversion price for these loans is pegged at DKK 0.20 per share.
• Should the market price fall below the conversion price, redemption can be executed based on market valuation; conversely, if the market price surpasses the conversion price, shares will be redeemed at the conversion price.

Future Outlook and Commitment

Pharma Equity Group is dedicated to ensuring that this financial strategy complements its core objectives. As part of its mission, the company focuses on promoting the innovative drug candidates within its subsidiary, Reponex Pharmaceuticals A/S. This commitment to healthcare ensures robust support for existing projects while laying a foundation for potential future investments.

Moreover, the company’s leadership has emphasized the importance of maximizing the impact of their current drug candidates before seeking new strategic investments. This dedicated focus helps reinforce Pharma Equity Group’s position in the healthcare market.

Contact Information

For further inquiries, interested parties may reach out to:

Christian Tange, CEO of Pharma Equity Group A/S, phone: +45 2948 8417

Christian Vinding Thomsen, Chairman of the Board of Directors, phone: +45 2622 7222

Frequently Asked Questions

What are the main terms of the new convertible loans?

The new convertible loans will bear a 10% interest rate and allow conversion into shares at DKK 0.15 each.

What is the total amount of convertible loans being issued?

Pharma Equity Group will issue convertible loans totaling DKK 10,892,187.

What happens if the conversion rights are not exercised?

If not exercised, the loans will be redeemed in shares, calculated at the conversion price.

Are existing shareholders given any rights regarding new shares?

No, the new shares will be issued without pre-emptive rights for existing shareholders.

Who can I contact for more details regarding this announcement?

You can contact Christian Tange, the CEO at +45 2948 8417 or Christian Vinding Thomsen, the Chairman, at +45 2622 7222 for more information.

About The Author

Hello Kelly Martin here, a financial and publicly traded company specialist committed to writing with clarity and sage advice. Having a wealth of experience and a thorough grasp of corporate dynamics and the financial environment, my main goal in writing blog posts and articles is to provide insightful analysis together with useful guidance. My objective is to arm readers with the information they need to comprehend the complexities of publicly traded companies and make wise financial decisions.

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