- DEINOVE immediately strengthens its cash position by €1.5 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 3rd 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 3rd tranche is composed of 150 OCA with a nominal value of EUR 10,000 each, representing a total amount of EUR 1,500,000, 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 all of the 220 OCA issued under the first tranche and 86 out of the 100 OCA issued under the second tranche have already been converted to date.
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.
It is further recalled that DEINOVE and the Investor entered on April 2, 2020 into an amendment to the contract concluded on July 9, 2019**.
* Press release dated July 9, 2019 available on the Company's website (http://www.deinove.com/en/news/all-press-releases/issuance-notes-convertible-new-shares-maximum-amount-eu15m-issuance-first-eu22-million-tranche)
** Press release dated April 3, 2020 available on the Company's website (http://www.deinove.com/en/news/all-press-releases/issuance-2nd-tranch-eu1-million-notes-convertible-new-shares )