Prometic Life Sciences Inc. has closed the follow-on investment which consists of a $25 million loan from Structured Alpha LP, an affiliate of Peter J. Thomson’s investment firm, Thomvest Asset Management Inc.
Prometic is active in developing its own novel small-molecule therapeutic products targeting unmet medical needs in the field of fibrosis, cancer, and autoimmune diseases/inflammation. A number of plasma-derived and small molecule products are under development for orphan drug indications.
Recently, the company received concurrence from the U.S. Food and Drug Administration (FDA) on the design of the first of its PBI-4050’s planned phase 2/3 clinical trials for idiopathic pulmonary fibrosis based on the efficacy data generated in the recently completed 40 patient Phase 2 open-label study.
Thomvest Asset Management Inc. is a Toronto-based investment management firm controlled by Peter J. Thomson. Structured Alpha LP is an affiliate of Thomvest Asset Management Inc. that makes structured investments in companies that leverage disruptive technologies and business models to pursue high-growth commercial opportunities.
The loan is secured by Prometic’s assets, excluding its patent portfolio.
The redemption value of the loan implies a compounded annual interest rate of approximately 8.5 per cent.
Under the agreement of the loan, Prometic will not pay interest or principal untilJuly 31, 2022.
As part of this transaction, Prometic has granted Structured Alpha LP a warrant to purchase 10,600,407 common shares at an exercise price of $3.70 per common share with a term expiring in October 2023.
The proceeds received by Prometic from the aggregate exercise of all of the warrants would be sufficient to repay the loan in its entirety, the company said.
No material additional security or covenants have been granted to Structured Alpha LP, over those already in place by the current original issue discount notes.