Publication date: 27/06/2019
Bone Therapeutics SA (Euronext Brussels and Paris: BOTHE; the "Company" or "Bone Therapeutics"), the leading biotech company focused on the development of innovative cell and biological therapies to address high unmet medical needs in orthopaedics and bone diseases, today announces that it has successfully raised EUR 8.5 million in gross proceeds through a private placement of 1,351,352 new shares via an accelerated bookbuild offering, launched on 27 June 2019 (the "Private Placement") and a non-dilutive subordinated bond placement (the “Bond Issuance”).
Thomas Lienard, Chief Executive Officer of Bone Therapeutics commented: “The level of support we received from our existing and new investors is a true recognition of our potential to fundamentally change the way patients with bone diseases and orthopaedic conditions are treated. Over the past nine months, we have made substantial progress across our entire business, including the successful completion of three Phase II programmes across multiple indications and the implementation of a proprietary, high-yield, scalable cell therapy manufacturing process. The funds raised today will allow us to further build on this positive momentum and to continue to build significant value for our shareholders and patients. We look forward to reporting on our progress over the next coming period.”
Jean-Luc Vandebroek, Chief Financial Officer of Bone Therapeutics, added: “We are very pleased with the demand and support from both our existing shareholders as well as new local and international investors, underpinning their confidence in our Company and the unique potential of our innovative product candidates. The associated subordinated bond placement allowed us to diversify our funding sources to strengthen our balance sheet ahead of the anticipated start of the late-stage clinical programmes with ALLOB and JTA-004, while limiting the dilution of our existing shareholders. In line with our financing strategy, we will continue to seek funding to further strengthen our working capital and to fund our operations, including strategic transactions, additional private placement transactions or public share offerings.”
Bone Therapeutics intends to use the net proceeds from the Private Placement and the Bond Issuance to:
With the total gross proceeds of EUR 8.5 million raised through the Private Placement and the Bond Issuance, the Company expects to have sufficient cash to carry out its strategic objectives into Q3 2020.
Via the Private Placement, Bone Therapeutics has raised EUR 5.0 million and placed 1,351,352 new shares with current and new institutional investors in Belgium and abroad at a price of EUR 3.70 per share, which represents a 15% discount to yesterday’s closing price. The new shares represent 15.1% of the Company’s shares currently admitted to trading on Euronext Brussels and Euronext Paris (pre-transaction) and will bring the total number of shares (post-transaction) to 10,303,323. The new shares will be admitted to trading on Euronext Brussels and Paris following their issuance, which is expected to take place on 1 July 2019.
The payment and delivery of the new shares is expected to take place on 1 July 2019, and an application will be made to admit the new shares to trading on the regulated markets of Euronext Brussels and Euronext Paris at the same time. The new shares to be issued will have the same rights and benefits as, and rank pari passu in all respects with, the existing and outstanding shares of the Company at the moment of their issuance.
Via the Bond Issuance, the Company has raised EUR 3.5 million. The non-dilutive subordinated bonds will be issued in registered form, redeemable at 100% of their principal amount with a maturity of 48 months and a coupon of 8% per annum. The coupon will be payable annually.
The new ordinary shares were offered through an accelerated bookbuild procedure with institutional investors only, outside the United States, in accordance with Regulation S under the Securities Act, and may be subject to restrictions in other jurisdictions.
Belfius Bank NV/SA, in cooperation with Kepler Cheuvreux SA and its affiliates, is acting as Sole Bookrunner (the "Bookrunner") in the Private Placement. In relation to the Private Placement, the Company has agreed with the Bookrunner a market customary 180-days standstill period on future share issuances, waivable by the Bookrunner and subject to customary exceptions.
Bone Therapeutics is a leading biotech company focused on the development of innovative products to address high unmet needs in orthopaedics and bone diseases. Based in Gosselies, Belgium, the Company has a broad, diversified portfolio of bone cell therapy and an innovative biological product in later-stage clinical development across a number of disease areas, which target markets with large unmet medical needs and limited innovation.
Bone Therapeutics’ core technology is based on its allogeneic cell therapy platform (ALLOB) which uses a unique, proprietary approach to bone regeneration, which turns undifferentiated stem cells from healthy donors into bone-forming cells. These cells can be administered via a minimally invasive procedure, avoiding the need for invasive surgery, and are produced via a proprietary, cutting-edge manufacturing process.
The Company’s ALLOB product pipeline includes a cell therapy product candidate that is expected to enter Phase II/III clinical development for the treatment of delayed-union fractures and a Phase II asset in patients undergoing a spinal fusion procedure. In addition, the Company is also developing an enhanced viscosupplement, JTA-004, which is expected to enter Phase III development for the treatment of pain in knee osteoarthritis.
Bone Therapeutics’ cell therapy products are manufactured to the highest GMP (Good Manufacturing Practices) standards and are protected by a broad IP (Intellectual Property) portfolio covering ten patent families as well as knowhow. Further information is available at www.bonetherapeutics.com.