Polyphor AG bags CHF19.3 in equity financing

Polyphor AG announced it has entered into an equity-linked financing arrangement with the French company IRIS to raise a gross amount of up to CHF19.3m over two years. IRIS will receive Polyphor shares to be created from the company's conditional capital based on this interest-free mandatory convertible bonds programme. It remains at the sole discretion of Polyphor to suspend or terminate the staggered financing.

Polyphor said it would use the proceeds to advance the refocussed development of its oncology and novel antibiotics pipeline, focussing particularly on the pivotal Phase III study progress of balixafortide in metastatic breast cancer patients.

IRIS is committed to buying on a monthly basis and over a period of two years twenty-four tranches of CHF 800,000 of unsecured zero-coupon mandatory convertible bonds. The programme can be tailor-made in terms of period and tranche size, according to Polyphor AG’s financing needs. During the term of the financing, IRIS will convert each month the mandatory convertible bonds into shares at a preferential rate over the applicable volume-weighted average price. These shares are expected to be sold on the market or in block trade.