Zealand Pharma Announces $200 Million Financing Agreement
99436 Helge Larsen/PI-redaktør 14/12 2021 14:41
Zealand Pharma Announces Seven-Year, $200 Million Financing Agreement with Oberland Capital
Company announcement - No. 75 / 2021
Zealand Pharma Announces Seven-Year, $200 Million Financing Agreement with Oberland Capital
Agreement includes an upfront payment of $100 million in exchange for a 7-year, interest-only secured note
The non-dilutive debt facility will support continued development of clinical pipeline, including additional indications for dasiglucagon and glepaglutide, as well as earlier stage pipeline investigating unmet needs in obesity and inflammatory diseases
Copenhagen, DK and Boston, MA, U.S. December 14, 2021 - Zealand Pharma A/S (Nasdaq: ZEAL) (CVR-no. 20045078,) a biotechnology company focused on the discovery, development and commercialization of innovative peptide-based medicines, today announced a financing agreement with Oberland Capital Management LLC ("Oberland Capital"). The agreement includes an upfront payment of $100 million in exchange for a 7-year, interest-only secured note (the "Secured Note").
In addition to the $100 million upfront payment, Zealand will receive the following:
$50 million in exchange for an additional note with terms and conditions consistent with the Secured Note, available at Zealand's option any time prior December 31, 2023, following receipt of approval of glepaglutide for the treatment of short bowel syndrome (SBS) by the Food and Drug Administration;
Up to $50 million in exchange for an additional note on terms to be mutually agreed upon, available at Zealand's option any time prior to June 30, 2023, to acquire products and/or companies;
The interest rate for the Secured Note is 6.0% plus 3-month LIBOR or 0.25%, whichever is greater
Oberland Capital will also receive a low single-digit royalty obligation on net sales during the term of the agreement.
"This new funding from Oberland Capital enables us to continue to selectively invest in our robust clinical-stage pipeline, which includes multiple programs in Phase 3 trials across a range of metabolic and gastrointestinal diseases, as well as in our pre-clinical pipeline," said Matthew Dallas, Senior Vice President and Chief Financial Officer at Zealand Pharma. "Importantly, in addition to the initial $100 million upfront payment, a further $50 million becomes available on the potential approval of glepaglutide for the treatment of SBS, where we anticipate Phase 3 pivotal trial results in Q3 of 2022."
"We are delighted to support Zealand in its mission to develop and commercialize medicines for patients in need of new treatments for metabolic and gastrointestinal diseases," said William Clifford, Partner at Oberland Capital. "The Zealand team has a clear mission of delivering five commercialized products by 2025, aiming to change the lives of patients, and we are excited to partner with them on this path forward."
About Oberland Capital
Oberland Capital, a private investment firm with over $2.25 billion in capital commitments since inception, is focused exclusively on investing in the global healthcare industry and specializes in flexible investment structures customized to meet the specific capital requirements and strategic objectives of its transaction partners. Oberland Capital's broad suite of financing solutions includes monetization of royalty streams, acquisition of future product revenues, creation of project-based financing structures, and investments in traditional debt and equity. With a combination of deep industry knowledge and extensive structured finance experience, the Oberland Capital team has a history of creating value for its transaction partners.
About Zealand Pharma A/S
Zealand Pharma A/S (Nasdaq: ZEAL) ("Zealand") is a biotechnology company focused on the discovery, development, and commercialization of peptide-based medicines. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market and three candidates are in late-stage development. In addition, license collaborations with Boehringer Ingelheim and AstraZeneca create opportunities for more patients to potentially benefit from Zealand-invented peptide investigational agents currently in development.
Zealand was founded in 1998 in Copenhagen, Denmark, and has presence throughout the U.S. that includes key locations in Boston, and Marlborough (MA). For more information about Zealand's business and activities, please visit http://www.zealandpharma.com.
For further information, please contact:
Zealand Pharma Investor Relations
Maeve Conneighton
Argot Partners
investors@zealandpharma.com
Zealand Pharma Media Relations
David Rosen
Argot Partners
media@zealandpharma.com
Company announcement - No. 75 / 2021
Zealand Pharma Announces Seven-Year, $200 Million Financing Agreement with Oberland Capital
Agreement includes an upfront payment of $100 million in exchange for a 7-year, interest-only secured note
The non-dilutive debt facility will support continued development of clinical pipeline, including additional indications for dasiglucagon and glepaglutide, as well as earlier stage pipeline investigating unmet needs in obesity and inflammatory diseases
Copenhagen, DK and Boston, MA, U.S. December 14, 2021 - Zealand Pharma A/S (Nasdaq: ZEAL) (CVR-no. 20045078,) a biotechnology company focused on the discovery, development and commercialization of innovative peptide-based medicines, today announced a financing agreement with Oberland Capital Management LLC ("Oberland Capital"). The agreement includes an upfront payment of $100 million in exchange for a 7-year, interest-only secured note (the "Secured Note").
In addition to the $100 million upfront payment, Zealand will receive the following:
$50 million in exchange for an additional note with terms and conditions consistent with the Secured Note, available at Zealand's option any time prior December 31, 2023, following receipt of approval of glepaglutide for the treatment of short bowel syndrome (SBS) by the Food and Drug Administration;
Up to $50 million in exchange for an additional note on terms to be mutually agreed upon, available at Zealand's option any time prior to June 30, 2023, to acquire products and/or companies;
The interest rate for the Secured Note is 6.0% plus 3-month LIBOR or 0.25%, whichever is greater
Oberland Capital will also receive a low single-digit royalty obligation on net sales during the term of the agreement.
"This new funding from Oberland Capital enables us to continue to selectively invest in our robust clinical-stage pipeline, which includes multiple programs in Phase 3 trials across a range of metabolic and gastrointestinal diseases, as well as in our pre-clinical pipeline," said Matthew Dallas, Senior Vice President and Chief Financial Officer at Zealand Pharma. "Importantly, in addition to the initial $100 million upfront payment, a further $50 million becomes available on the potential approval of glepaglutide for the treatment of SBS, where we anticipate Phase 3 pivotal trial results in Q3 of 2022."
"We are delighted to support Zealand in its mission to develop and commercialize medicines for patients in need of new treatments for metabolic and gastrointestinal diseases," said William Clifford, Partner at Oberland Capital. "The Zealand team has a clear mission of delivering five commercialized products by 2025, aiming to change the lives of patients, and we are excited to partner with them on this path forward."
About Oberland Capital
Oberland Capital, a private investment firm with over $2.25 billion in capital commitments since inception, is focused exclusively on investing in the global healthcare industry and specializes in flexible investment structures customized to meet the specific capital requirements and strategic objectives of its transaction partners. Oberland Capital's broad suite of financing solutions includes monetization of royalty streams, acquisition of future product revenues, creation of project-based financing structures, and investments in traditional debt and equity. With a combination of deep industry knowledge and extensive structured finance experience, the Oberland Capital team has a history of creating value for its transaction partners.
About Zealand Pharma A/S
Zealand Pharma A/S (Nasdaq: ZEAL) ("Zealand") is a biotechnology company focused on the discovery, development, and commercialization of peptide-based medicines. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market and three candidates are in late-stage development. In addition, license collaborations with Boehringer Ingelheim and AstraZeneca create opportunities for more patients to potentially benefit from Zealand-invented peptide investigational agents currently in development.
Zealand was founded in 1998 in Copenhagen, Denmark, and has presence throughout the U.S. that includes key locations in Boston, and Marlborough (MA). For more information about Zealand's business and activities, please visit http://www.zealandpharma.com.
For further information, please contact:
Zealand Pharma Investor Relations
Maeve Conneighton
Argot Partners
investors@zealandpharma.com
Zealand Pharma Media Relations
David Rosen
Argot Partners
media@zealandpharma.com
99436 Zealand Pharma Announces $200 Million Financing Agreement
14/12 14:41 Helge Larsen/PI-redaktør 3
14/12 14:41 Helge Larsen/PI-redaktør 3