Pharnext Announces €20.5 Million Bond Loan

  • Supports research and development through the end of 2019
  • Pharnext has raised over €36.5 million since April 2018

PARIS–(BUSINESS WIRE)–Regulatory News:

Pharnext
SA
(Paris:ALPHA) (FR0011191287 – ALPHA), a
biopharmaceutical company pioneering a new approach to the development
of innovative drug combinations based on big data genomics and
artificial intelligence, today announced a financing of up to €20
million through a bond loan with IPF Partners, one of the top providers
of alternative financings in the healthcare sector.

“This financing with IPF Partners, in combination with the private
placement announced earlier this year, strengthens our financial
position and enables us to continue advancing the clinical development
and commercial preparation for our innovative drug combinations,” said
Prof. Daniel Cohen, M.D., Ph.D., Co-Founder and Chief Executive Officer
of Pharnext. “We are grateful for the continued support from our
shareholders and financial partners, and we look forward to reporting
top-line results from our Phase 3 trial of PXT3003 in
Charcot-Marie-Tooth disease type 1A later this year.”

The financing consists of three tranches of bonds with an annual
interest rate of EURIBOR+11%. The first tranche of €11.5 million will be
issued on June 30, 2018 at the latest, the second tranche of €3.5
million will be issued on July 30, 2018 at the latest and the third
tranche of €5 million could be issued at Pharnext’s will and following
top-line results from Pharnext’s ongoing pivotal Phase 3 trial of
PXT3003, its lead drug candidate for the treatment of
Charcot-Marie-Tooth disease type 1A (CMT1A), expected in the second half
of 2018.

Additionaly, a line of convertible bonds will be also issued with
Yorkville Advidors for up to €0.5 million in convertible securities,
with a maturity date of one year following their date of issue.

The transaction closed today concludes a series of successive financings
for Pharnext which began in April 2018, for total proceeds of €36.5
million.

CHARACTERISTICS OF THE PRIVATE PLACEMENT

IPF Partners. The bonds have been issued in accordance with the
approval of the Board of Directors implemented according to the Eighth
Resolution of the Shareholders’ Meeting of June 28, 2017 (the
“Shareholders’ Meeting”), without pre-emptive subscription rights, to
the company IPF Fund I SCA, SICAV FIS et IPF Fund II SCA.

A total of 20,000,000 bonds could be issued via private placement, with
a price of each equal to €1, and each comprising an ordinary warrant
(“Warrant”). Warrants entitle to subscribe a total of 574.372 ordinary
shares for the two firsts tranches and 53.968 ordinary shares for the
third tranche. Such total of new shares will be entirely assimilated
into existing Pharnext shares with an exercise price equal to the
volume-weighted average price of an ordinary share of Pharnext on
Euronext Paris for the last three days prior to the date of issuance of
each tranche minus a five (5) percent discount and will represent
approximately 4.81% of the number of outstanding shares in the event of
their exercise by IPF. The Warrants may be exercised until July 31, 2026.

YorkVille. Convertible Bonds (“CB”) has been issued in
accordance with the approval of the Board of Directors implemented
according to the Eighth Resolution of the Shareholders’ Meeting, without
pre-emptive subscription rights, to YA II PN, LTD, an investment funds
managed by a portfolio management company Yorkville Advisors Global, LP.
A total of 50 CB will be issued, each with a par value of €10,000,
representing a total aggregate nominal amount of €500,000 and will be
subscribed at 98% of par. The convertible bonds have a maturity of 12
months from their date of issue. The CB holder may convert all or any of
the CB into a number of ordinary shares equal to the corresponding
aggregate principal amount divided by 92% of the lowest daily volume
weighted average price over the 10 trading days prior to each conversion
date. The CB will not be listed or admitted for trading on the Euronext
Growth Paris market. Trading Days during which the CB holder has sold
any share of Pharnext in the market will be excluded from the 10 trading
days preceding the Conversion Date.

Pursuant to Article 211-3 of the AMF (Autorité des Marchés Financiers)
General Regulations, it should be noted that neither of the
above-mentioned issues has resulted or will result in the drafting of a
prospectus submitted to the AMF for approval.

About Pharnext
Pharnext is an advanced clinical-stage
biopharmaceutical company developing novel therapeutics for orphan and
common neurodegenerative diseases that currently lack curative and/or
disease-modifying treatments. Pharnext has two lead products in clinical
development. PXT3003 is currently in an international Phase 3 trial for
the treatment of Charcot-Marie-Tooth disease type 1A and benefits from
orphan drug status in Europe and the United States. The results of this
trial are expected in the second half of 2018. PXT864 has generated
positive Phase 2 results in Alzheimer’s disease. Pharnext has developed
a new drug discovery paradigm based on big genomic data and artificial
intelligence: PLEOTHERAPY™. The Company identifies and develops synergic
combinations of drugs called PLEODRUG™ offering several key advantages:
efficacy, safety and robust intellectual property. The Company was
founded by renowned scientists and entrepreneurs including Professor
Daniel Cohen, a pioneer in modern genomics and is supported by a
world-class scientific team.

Pharnext is listed on Euronext Growth Stock Exchange in Paris (ISIN
code: FR0011191287).
For more information, visit http://www.pharnext.com/

IPF Partners
IPF Partners is a leading alternative financing
provider focused on the healthcare sector with over €200m under
management. IPF invests directly in emerging pharma/biotech, medtech and
diagnostics companies. Founded in 2011 by a seasoned multi-disciplinary
team combining over fifty years of finance and investment and over
thirty years of healthcare experience, IPF is providing bespoke,
long-term financing.

For more information visit www.ipfpartners.com.

Disclaimer
This press release has been issued to
fulfil Pharnext’s permanent reporting obligations. It does not
constitute a public offering, subscription offering or a solicitation in
view of a public offering.

Contacts

Pharnext
François Chamoun, +33 (0)1 41 09 22 30
Legal
Officer
contact@pharnext.com
or
Financial
Communication (France)

Actifin
Stéphane Ruiz, +33 (0)1 56
88 11 15
sruiz@actifin.fr
or
Investor
Relations (U.S.)

Stern Investor Relations, Inc.
Matthew
Shinseki, +1 212 362 1200
matthew@sternir.com
or
Investor
Relations (Europe)

MC Services AG
Anne Hennecke, +49 211
529252 22
anne.hennecke@mc-services.eu
or
Media
Relations (Europe)

Ulysse Communication
Bruno Arabian, +33
(0)1 81 70 96 30
barabian@ulysse-communication.com
or
Media
Relations (U.S.)

RooneyPartners
Kate L. Barrette, +1 212
223 0561
kbarrette@rooneyco.com