Bone Therapeutics Launches Equity Placement

 

Bone Therapeutics (Euronext Brussels and Paris: BOTHE), the bone cell therapy company addressing high unmet medical needs in orthopaedics and bone diseases (the "Company"), today announces the launch of a private placement to raise approximately €8 million via an accelerated bookbuild offering (the “Offering”), with the potential to increase the size of the placement.

Bone Therapeutics currently plans to use the net proceeds of the Offering for
• Finalising the Phase I/IIA delayed-union trial (ALLOB®) and beginning recruitment of the next phase (approx. 20% of the net proceeds);
• Completion of the recruitment and follow-up of the included patients for Phase IIA lumbar spinal fusion trial (ALLOB®) and initiation of the groundwork for the next phase (in vivo, EU & US clinical and regulatory preparation) (approx. 20% of the net proceeds);
• Further patient enrolment of the Phase III osteonecrosis trial (PREOB®) with completion of the interim analysis and continued follow-up (approx. 20% of the net proceeds);
• Optimization and scale-up for the allogeneic product (approx. 20% of the net proceeds); and
• Other and general business expenses

Upon successful completion of the Offering, the Company expects to have sufficient cash to meet its present requirements and to carry out its strategic objectives and cover its working capital needs for a period until the end of 2018.

The book building process will commence immediately. The Company will announce the results of the Offering as soon as possible after the closing of the book building in a subsequent press release.

Trading in the Company's shares on Euronext Brussels and Euronext Paris will be suspended during the book building period and trading in the stock is expected to resume following the publication of the results of the Offering.

Bryan, Garnier & Co is acting as Sole Global Coordinator and Joint Bookrunner, and KBC Securities NV is acting as Joint Bookrunner for the placement.
Pharmstandard International S.A., a fully owned subsidiary of Pharmstandard, JSC and the investment arm of a group of companies which includes Cellthera, Pharm LLC, has expressed its intention to submit an order to the Joint Bookrunners. In addition, existing shareholders SFPI S.A. and S.R.I.W. S.A. also expressed their intention to submit an order to the Joint Bookrunners. Together, the orders of these investors are expected to cover half of the intended Offering amount. The Offering is open to institutional investors and such other investors as permitted under applicable private placement exceptions. Any final allocation to participating investors will be made by the Joint Bookrunners based on customary, objective and pre-identified criteria. No guarantee has been given as to the final allocation to Pharmstandard International S.A., SFPI S.A. or S.R.I.W. S.A., or that any allocation will be made to them, or as to the size of any such allocation.


If the number of subscribed shares would exceed 1,369,930 shares (i.e. 20% of the current outstanding shares, which can immediately be admitted to trading), the Joint Bookrunners could, as the case may be, allocate registered, non-listed new shares to investors who are willing to accept non-listed shares and/or enter into a share swap agreement with one or more existing shareholders in order to deliver listed shares to all investors who receive allocated shares in the private placement. As part of such share swap agreement the shareholder(s) would deliver existing and listed shares to the settlement agent and would receive in exchange the same number of newly issued non-listed shares. The new non-listed shares would remain in registered form until they will be listed on the regulated market of Euronext Brussels and Euronext Paris upon approval of a listing prospectus by the FSMA on a later date.


In relation to the Offering, the Company has agreed with the Joint Bookrunners to a market customary 180 days standstill period on future share issuances, waivable by the Joint Bookrunners.

Note

Bone Therapeutics is a leading cell therapy company addressing high unmet needs in orthopaedics and bone diseases. Based in Gosselies, Belgium, the Company has a broad, diversified portfolio of bone cell therapy products in clinical development across a number of disease areas targeting markets with large unmet medical needs and limited innovation.
Our technology is based on a unique, proprietary approach to bone regeneration which turns undifferentiated stem cells into “osteoblastic”, or bone-forming cells. These cells can be administered via a minimally invasive procedure, avoiding the need for invasive surgery.


Our primary clinical focus is ALLOB®, an allogeneic “off-the-shelf” cell therapy product derived from stem cells of healthy donors, which is in Phase II studies for the treatment of delayed-union fractures and spinal fusion. The Company also has an autologous bone cell therapy product, PREOB®, obtained from patient’s own bone marrow and currently in Phase III development for osteonecrosis of the hip.


Bone Therapeutics’ cell therapy products are manufactured to the highest GMP standards and are protected by a rich IP estate covering nine patent families. Further information is available at: www.bonetherapeutics.com.

 

 

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