Socius Capital News
Pharming Group NV Receives EUR16.1 million Investment From Socius Capital
Socius Capital Group, based in New York and Los Angeles, has made an investment of EUR16.1 million in Pharming Group NV (NYSE Euronext: PHARM). Socius has completed financings with numerous life sciences and other emerging growth companies in the United States and Europe.
Socius is adept in making investments in undiscovered gems often overlooked by Wall Street, ready to deploy capital in emerging Companies with disruptive technologies.
Pharming Group will receive EUR16.1 million gross proceeds in cash in return for non-convertible debt notes and equity if Socius exercises its investment rights. The EUR16.1 million investment in Pharming comes from the issuance of ten year debt notes to Socius for the amount of EUR12 million (the "Pharming Notes") and EUR4 million in cash as partial consideration for the issuance of equity to Socius, if Socius exercises its EUR21.2 million investment rights in full. Socius will pay the remaining EUR17.2 million of its investment rights to Pharming with four year secured loan notes (the "Socius Notes") with an annually accruing interest rate of 0.65% payable to the Company. The Socius investments rights totaling a maximum value of EUR21.2 million are divided between:
* the right to make an equity investment up to EUR16.1 million in shares,
priced at EUR21.2 cents, which represents yesterday's closing bid
price, and
* the right to acquire warrants up to EUR5.1 million with a strike price
equal to yesterday's closing bid price of EUR21.2 cents.
Socius can either place the shares acquired by it in the market or accumulate them up to a maximum holding in Pharming of 21.8% of the number of outstanding shares. Socius is committed not to short sell or enter into any hedging transactions related to Pharming shares. Sijmen de Vries, Pharming Group CEO, commented: "This transaction provides Pharming with a financial bridge between the development-focused organization of today and the commercial-focused entity that we are evolving into. The capital will be deployed into executing our growth strategy, in particular the development of our recombinant C1 inhibitor franchise beyond the current scope of acute hereditary angioedema. This investment represents the majority of our capital needs to continue to execute on our plans for the foreseeable future. For our remaining smaller financing needs several non-dilutive (debt) financing instruments are under consideration.”
Pharming Group NV is developing innovative products for the treatment of unmet medical needs. Ruconest™ (Rhucin® in non-European territories) is a recombinant human C1 inhibitor approved for the treatment of angioedema attacks in patients with HAE in all 27 EU countries plus Norway, Iceland and Liechtenstein. The product is also under development for follow-on indications, i.e. antibody-mediated rejection (AMR) and delayed graft function (DGF) following kidney transplantation. The advanced technologies of Pharming Group include innovative platforms for the production of protein therapeutics, technology and processes for the purification and formulation of these products. Additional information is available on the Pharming website, www.pharming.com.
Socius is adept in making investments in undiscovered gems often overlooked by Wall Street, ready to deploy capital in emerging Companies with disruptive technologies.
Pharming Group will receive EUR16.1 million gross proceeds in cash in return for non-convertible debt notes and equity if Socius exercises its investment rights. The EUR16.1 million investment in Pharming comes from the issuance of ten year debt notes to Socius for the amount of EUR12 million (the "Pharming Notes") and EUR4 million in cash as partial consideration for the issuance of equity to Socius, if Socius exercises its EUR21.2 million investment rights in full. Socius will pay the remaining EUR17.2 million of its investment rights to Pharming with four year secured loan notes (the "Socius Notes") with an annually accruing interest rate of 0.65% payable to the Company. The Socius investments rights totaling a maximum value of EUR21.2 million are divided between:
* the right to make an equity investment up to EUR16.1 million in shares,
priced at EUR21.2 cents, which represents yesterday's closing bid
price, and
* the right to acquire warrants up to EUR5.1 million with a strike price
equal to yesterday's closing bid price of EUR21.2 cents.
Socius can either place the shares acquired by it in the market or accumulate them up to a maximum holding in Pharming of 21.8% of the number of outstanding shares. Socius is committed not to short sell or enter into any hedging transactions related to Pharming shares. Sijmen de Vries, Pharming Group CEO, commented: "This transaction provides Pharming with a financial bridge between the development-focused organization of today and the commercial-focused entity that we are evolving into. The capital will be deployed into executing our growth strategy, in particular the development of our recombinant C1 inhibitor franchise beyond the current scope of acute hereditary angioedema. This investment represents the majority of our capital needs to continue to execute on our plans for the foreseeable future. For our remaining smaller financing needs several non-dilutive (debt) financing instruments are under consideration.”
Pharming Group NV is developing innovative products for the treatment of unmet medical needs. Ruconest™ (Rhucin® in non-European territories) is a recombinant human C1 inhibitor approved for the treatment of angioedema attacks in patients with HAE in all 27 EU countries plus Norway, Iceland and Liechtenstein. The product is also under development for follow-on indications, i.e. antibody-mediated rejection (AMR) and delayed graft function (DGF) following kidney transplantation. The advanced technologies of Pharming Group include innovative platforms for the production of protein therapeutics, technology and processes for the purification and formulation of these products. Additional information is available on the Pharming website, www.pharming.com.
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