This ann from transgene Transgene (Paris:TNG) (Euronext Paris:...

This ann from transgene

Transgene (Paris:TNG) (Euronext Paris: FR0005175080), a French biopharmaceutical company focused on discovering, developing and manufacturing targeted immunotherapies for the treatment of cancer and infectious diseases, announces today the launch of a rights issue aiming to raise 45.5 million euros.

The terms and conditions of the rights issue are described in a prospectus (containing Transgene’s Document de Référence 2012, its update and a note d’opération) that has received the visa N°14-062 dated February 27, 2014 from the French Autorité des marchés financiers.

This refinancing will enable Transgene to strengthen its financial situation in order to advance its clinical development programs, in particular the preparation of the Phase 3 studies for TG4010 (non-small cell lung cancer) and Pexa-Vec (advanced liver cancer).

Institut Mérieux, which currently owns 54.87% of Transgene’s share capital through its subsidiary TSGH, has communicated to Transgene its commitment to fully subscribe to its pro rata share of the rights offering and that it may subscribe for an additional amount on a reducible basis (souscription à titre réductible).

Institut Mérieux stated: “We fully support Transgene’s decision to reinforce its financial position before entering into late-stage clinical development of its two programs, TG4010 and Pexa-Vec. At the present valuation and the proposed terms, this capital increase gives us the opportunity to consolidate our position in Transgene at the threshold of a new development stage of the Company”.

A portion of the remainder of the rights issue will be guaranteed by a bank so that, together with Institut Mérieux’s commitment, at least 75% of the rights issue will be underwritten1 (taking into account the number of shares necessary for the exercise of the preferential subscription right of the beneficiaries of stock options who would have exercised their options).

A number of U.S. institutional investors that are not yet shareholders of Transgene have expressed their interest to acquire a direct shareholding in Transgene’s capital. In the case these investors should confirm their willingness to invest in Transgene’s shares and cannot do so in the rights offering, the Company may decide to proceed with a private placement of up to a maximum of 2 million shares directed at these qualified investors only after the rights offering.

As of December 31, 2013, the Company’s cash and cash equivalents, available-for-sale financial assets and other current financial assets amounted to 47.9 million euros. Given the Company’s anticipated net cash burn of approximately 50 to 55 million euros for the next twelve months, the rights issue launched today will enable the Company to have sufficient working capital to meet its requirements for the next twelve months, even if Novartis does not exercise its option on TG4010.

Transgene believes that the proceeds of the refinancing should allow it to extend its cash horizon to 2016 if Novartis exercises its option on TG4010. Should Novartis not exercise its option on this program, the Company will seek another strategic partner. However, its cash horizon would be 2015 in the absence of a partner for this product. These cash horizons will remain unchanged even if only 75% of the capital increase is subscribed.

https://europeanequities.nyx.com/en/content/transgene-launches-rights-issue-%E2%82%AC455-million-euros-price-10-euros-share