03.04.2020
  • DEINOVE immediately strengthens its cash position by €1 million

DEINOVE (Euronext Growth Paris: ALDEI), a French biotech company that uses a disruptive approach to develop innovative antibiotics and bio-based active ingredients for cosmetics, announces today the issuance of a 2nd tranche of notes convertible into new shares (the "OCA") as part of the agreement reached on July 9, 2019* with the European Select Growth Opportunities Fund (the "Investor") relating to a financing through the issuance of OCA for a maximum nominal amount of €15 million, with a 6.5% face discount upon conversion into shares, not bearing interest and with no stock subscription warrants attached, over a maximum period of 24 months.

This second tranche is composed of 100 OCA with a nominal value of EUR 10,000 each, representing a total amount of EUR 1,000,000, fully subscribed by the Investor today, in accordance with the contract signed on July 9, 2019.

The characteristics of the OCA and their theoretical dilutive impact are detailed in the press release dated July 9, 2019. DEINOVE recalls that 218 of the 220 OCA issued under the first tranche have already been converted to date.

Objectives

The objectives of this issue for DEINOVE are to (i) finance the need for working capital, (ii) continue the development and marketing of natural active ingredients for the cosmetic industry, (iii) continue the Phase II clinical trial in the United States testing DNV3837, its most advanced antibiotic candidate for the treatment of severe gastrointestinal infections caused by Clostridiodes difficile and (iv) discover new antibiotic leads based on its integrated and automated, high content, screening platform.

Concurrently, DEINOVE and the Investor entered into an amendment to the contract concluded on July 9, 2019. The purpose of this amendment is, in particular, to modify one of the characteristics of the OCA, namely the price per share used to determine the number of new shares to be obtained by the Investor in the event of conversion. Thus, this price is now equal to 93.5% of the lowest of the volume-weighted average daily prices on the trading days during which the Investor has not sold any DEINOVE shares on the market, among the 10 trading days immediately preceding the date of receipt of a conversion notice by DEINOVE.