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4 June, 2020 - 12:48 By Tony Quested

Acacia boosts coffers with €25 million debt for equity move

Acacia Pharma

Cambridge biopharma business Acacia Pharma Group has executed a €25 million debt for equity swap with Cosmo.

Acacia Pharma is focused on developing and commercialising novel products to improve the care of patients undergoing serious medical treatments such as surgery, invasive procedures or chemotherapy.

Under the terms of the amendment, a €10 million loan facility that was made available on the approval of Acacia’s BARHEMSYS® technology is terminated and replaced with a €10 million equity investment at a price of €3.112 per share.

This represents a c4.1 per cent premium to the closing share price on May 29 and equates to 3,213,769 shares to be issued to Cosmo. In addition, a further 367,893 shares are being issued to Cosmo (at an equity subscription price of €2.99 per share) in satisfaction of a €1,100,000 break fee payable under the terms of the loan amendment. 

The €25 million loan facility, which will be made available by Cosmo on the approval of BYFAVO™ – a fast-acting intravenous benzodiazepine agent in-licensed from PAION AG – has not been affected by this transaction.

Mike Bolinder, CEO of Acacia Pharma, said: “We greatly appreciate the flexibility and strong show of support from our strategic partner, Cosmo Pharmaceuticals, which strengthens our balance sheet as we prepare to begin commercialisation later this year.”

Alessandro Della Chà, CEO of Cosmo, added: “We strongly believe that Acacia Pharma has the potential of becoming a leading player in its field. In order to do so the company must be well financed. 

“By moving from debt to equity we contribute towards the strengthening of Acacia Pharma’s financial structure and will now have an equity stake of 18.5 per cent in the company.”

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