Pharma Equity Group Moves Forward with Convertible Loans

Pharma Equity Group's Strategic Move on Convertible Loans

The Board of Directors of Pharma Equity Group has taken a significant step by approving the issuance of convertible loans. This strategic decision aligns with the authority bestowed by the company's Articles of Association, providing the group with the ability to raise substantial funds.

Details of the Convertible Loans

The Board has authorized the company to borrow up to DKK 6,757,895. These loans are categorized as subordinated loan capital, meaning they rank below other corporate debts. This characteristic is crucial, as it signals to potential investors that while the risk is present, there are also significant opportunities for growth.

Key Terms and Conditions

For those interested, here are several key conditions surrounding the convertible loans. First, the loans accumulate interest at a rate of 10% annually. Importantly, these loans do not require repayments until after the Exercise Period, which begins 23 calendar months after the loans are finalized. Post this period, the company has a 60-day window to settle the loan, including the accrued interest, although an extension of another 12 months may be requested.

Conversion Rights offered to Lenders

Lenders are granted a unique opportunity to convert their loans into shares of the company. This right can be exercised for a period of 30 days, commencing at the start of the Exercise Period. This conversion setup provides lenders with the potential to become shareholders, aligning their interests more closely with the company’s success.

Issuance of New Shares

Upon conversion, new shares will be issued without pre-emptive rights granted to existing shareholders. This strategic decision enhances the attractiveness of the investment, as the new shares will trade similarly to existing shares on Nasdaq Copenhagen. The conversion price is set at DKK 0.20 for each new share, which holds a nominal value of DKK 0.10. The maximum potential increase in share capital due to this conversion stands at DKK 7,577,666.

Future Company Directions

This development will not only solidify the financial stability of Pharma Equity Group but also fortifies its commitment to innovation within the healthcare sector. The company places a strong emphasis on advancing the drug candidates developed by its subsidiary, Reponex Pharmaceuticals A/S.

Commitment to Healthcare Innovation

Pharma Equity Group is dedicated to supporting the growth and success of its drug candidates actively. They strive to provide the necessary resources, expertise, and strategic partnerships essential for fostering innovative medical solutions and advanced therapeutic treatments. This focused approach is instrumental in driving forward the projects currently underway.

Long-term Vision

While the immediate focus remains on maximizing the potential of Reponex Pharmaceuticals’ initiatives, Pharma Equity Group also exhibits an open-minded approach to exploring future strategic investments in other ventures. Such a strategy ensures a dual commitment: enhancing current medical projects and remaining responsive to new opportunities for long-term growth.

Contact Information

For further inquiries regarding the convertible loans or other corporate activities, you can contact:

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 convertible loans?

Convertible loans are a form of debt that can be converted into equity, allowing lenders to become shareholders.

What is the interest rate on the loans?

The convertible loans from Pharma Equity Group bear an interest rate of 10% per annum.

What is the maximum amount that can be raised through the loans?

The Board has approved borrowing up to DKK 6,757,895 through these convertible loans.

Are existing shareholders granted any rights upon conversion?

No, the issuance of new shares will occur without pre-emptive rights for existing shareholders.

How does this affect the company's future plans?

The funds raised will significantly support the development of drug candidates and the company’s ongoing commitment to innovation in healthcare.

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