DGAP-News: MOLOGEN AG / Key word(s): Bond
28.02.2019 / 15:01
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Press release N 4 / 2019 of 28 February 2019
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MOLOGEN AG: Result of creditors’ meeting on convertible bond 2017/2025
Berlin, 28 February 2019 – The biopharmaceutical company MOLOGEN AG (ISIN DE000A2LQ900 / WKN A2LQ90) announced the results of today’s creditors’ meeting on the EUR4,999,990.00 6.00% convertible bond 2017/2025. At the creditors’ meeting, the bondholders voted on the agreement reached with the main bondholder at the end of October 2018 and the associated adjusted bond terms. The proposed resolutions were accepted by the vast majority of bondholders. Overall, 83.95% of the bondholders were represented at the creditors’ meeting.
At the end of October 2018, MOLOGEN AG had successfully concluded negotiations with the main bond creditor, who holds more than 75% of the outstanding bonds of the convertible bond 2017/2025. The bondholder had previously announced its intention to terminate the 2017/2025 convertible bond prematurely. In accordance with the agreement reached, the main bondholder waived its right to exercise the special termination right existing at the time. Thus, the immediate maturity of the convertible bond 2017/2015 and the associated immediate repayment obligation of approximately EUR3.9 million was averted and the short-term financing of MOLOGEN AG secured. In return, the company committed to propose to the creditors an amendment to the bond terms and conditions.
At the creditors’ meeting, the proposed amendment of the terms and conditions was submitted to all bondholders of the 2017/2025 convertible bond for approval. The agenda included the reduction of the conversion price from the original EUR7.61 to EUR2.46 and the increase of the conversion ratio from previously EUR1.134 to EUR4.065. In addition, and amendment of the termination rights was submitted to the bondholders for resolution.
The resolutions proposed by the Company were adopted by a large majority. Accordingly, the new conversion price of EUR2.46 and a conversion ratio of EUR4.065 as well as an amendment of the provisions on termination rights were resolved by the creditors’ meeting. In accordance with statutory law, the resolutions still have to be implemented by means of an amendment of the global bond certificate.
The immunotherapeutic agent lefitolimod is the Company’s lead compound and is currently being investigated in a pivotal trial. It is regarded as the best-in-class TLR9 agonist. Treatment with lefitolimod triggers a broad and strong activation of the immune system. On account of this mode of action, lefitolimod could potentially be used in various indications. Lefitolimod is currently being developed within the framework of a pivotal study for first line maintenance therapy for colorectal cancer. Key data of the phase II IMPULSE study in extensive-stage small cell lung cancer (ES-SCLC) and the data from the extension phase of the TEACH study in HIV have been published. In addition, lefitolimod is currently being investigated in a phase I combination study with the checkpoint inhibitor ipilimumab (Yervoy(R)) in various cancer indications. Along with various checkpoint inhibitors, lefitolimod, which is being investigated as part of a phase III clinical trial currently, is one of the few near-to-market product candidates in the field of immuno-oncology.
MOLOGEN AG is a publicly listed Company, headquartered in Berlin. The shares (ISIN, DE000A2LQ900/SIN: A2L Q90) are listed in the Prime Standard of the German Stock Exchange.
28.02.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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