Arctic Bioscience – funded to cash positive
- Arctic Bioscience is now funded through a NOK 30 million loan facility.
- Strong 30% y/y growth in sales revenues in 2024 and prospects of continued strong growth in coming years.
- Psoriasis drug candidate HRO350 on track for 12 months readout end of Q1.
Reference is made to the stock exchange notice 29th October 2024 on Q3 2024 Operational update. The Company announced working on various financing opportunities, where a liquidity contribution of around NOK 30 million was estimated to bring the Company into a positive cash flow position.
New funding of NOK 30 million is now secured. In addition, several cost reduction initiatives have been executed which reduces both the operational and capital expenditures going forward. The Company also delivered a strong close to 30% y/y growth in sales revenues in 2024 and see positive prospects of continued strong growth in 2025 and onwards.
The new funding is a combination of NOK 15 million in long-term loan from Innovation Norway, and NOK 15 million in a long-term convertible loan from a consortium of existing share owners and new investors, including a group of icelandic investors.
“We are very pleased that we have secured new funding which will give us a sufficient financial runway and stability to develop our Company further and build shareholder values. I am also grateful for the trust both Innovation Norway and our investors show in us and our strategy going forward”, says CEO Christer L. Valderhaug.
Further development of the HRO350 in mild-to-moderate psoriasis beyond the current phase IIb (phase III), will be funded separately through partnerships or specific project funding.
Details on the new funding:
The long-term loan from Innovation Norway of NOK 15 million is guaranteed by the European Investment Fund (EIF) and has a duration of 5 years, where the first two years has no installments. The loan has ordinary floating market interest rates.
The long-term convertible loan of NOK 15 million can be paid out in up to 3 tranches during the first 5 months of 2025. The maturity of the loan is 36 months after the date of the last tranche. Annual interest rate is set at 10% p.a. The loan which is not repaid, including accrued interests, is convertible by Lender at any time after the deposit into freely tradable shares delivered T+20 from the date of the conversion notice. Conversion price per share is the lower of 75% x previous 5 trading days VWAP (T+1) from the date the conversion notice is sent, including the coupon make-whole, or NOK 3
For further information, please contact:
Christer L. Valderhaug
CEO
Mobile: +47 920 84 601
Email: christer@arctic-bioscience.com
Jone R. Slinning
CFO
Mobile: +47 948 75 469
Email: jone@arctic-bioscience.com
About Arctic Bioscience
Arctic Bioscience is a biotech company developing and commercializing pharmaceutical and nutraceutical products based on unique bioactive marine compounds.
The company is developing HRO350 – a novel oral drug candidate. HRO350 is being developed for treatment of patients with mild-to-moderate psoriasis. This is a large patient group in need of new effective medicines with beneficial safety profile.
Nutraceuticals from Arctic Bioscience are sold globally as bulk ingredients as well as finished goods under the ROMEGA® brand.
Arctic Bioscience is led by a highly skilled team of talents with diverse and highly relevant background.