– Curetis and EIB agree on equity-linked participation upon maturity of new EUR 5 million tranche of debt financing
– Yorkville to provide funding of EUR 1.5 million to Curetis
Curetis N.V. (the “Company” and, together with Curetis GmbH, “Curetis”), a developer of next-level molecular diagnostic solutions, today announced that Curetis will receive another EUR 6.5 million in gross proceeds under two financing facilities.
Firstly, under the EIB debt financing facility originally put in place in December 2016, Curetis now stands to receive another EUR 5.0 million tranche of non-dilutive debt financing. This tranche will also have a five-year term to maturity and will require interest-only payments during that five-year term. In line with all prior tranches, the majority of interest is also deferred into the bullet repayment structure upon maturity. In return for EIB waiving certain conditions precedent to disbursing this EUR 5 million tranche, the parties have agreed on a 2.1% participation percentage interest (PPI). Upon maturity of the tranche, i.e. not before around mid-2024 (and no later than mid-2025), EIB will be entitled to an additional payment that is equity-linked and equivalent to 2.1% of the then total valuation of Curetis. All other terms and conditions of the EIB financing contract with Curetis remain unchanged.
Secondly, under the up to EUR 20 million Yorkville convertible notes financing facility that was originally implemented in October 2018, Curetis has now received access to another EUR 1.5 million gross in funding subject to having received the aforementioned EUR 5 million tranche from EIB. Net proceeds from this tranche are expected to be about EUR 1.36 million. As with the prior tranche, Yorkville is expected from time to time to convert such notes into equity and Curetis will then issue new shares. For further details on the Yorkville convertible notes facility, please also see the “Convertibles” section under: https://curetis.com/investors/#corporate-governance
“We are pleased to see continued support and funding from both EIB and Yorkville,” said Oliver Schacht, PhD, CEO of Curetis. “The additional funding will allow Curetis to continue executing on its R&D programs such as the Unyvero A30 RQ platform development towards partnering, the Unyvero LRT for BAL specimen in the US, as well as the Ares Genetics R&D programs. The Yorkville funding will also support commercial activities in the US and business development initiatives in Europe and Asia.”