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  • Cereno Scientific secures loan of SEK 90 million, extending the company's financial runway into 2025 and strengthening partnership opportunities

Cereno Scientific secures loan of SEK 90 million, extending the company's financial runway into 2025 and strengthening partnership opportunities

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Cereno Scientific (Nasdaq First North: CRNO B), a company developing innovative treatments for common and rare cardiovascular diseases, announced today that the Board of Directors of Cereno Scientific has decided to enter into a loan agreement for the total amount of SEK 90 million (the "Loan") issued by Formue Nord Fokus A/S (the "Lender").

Background and rationale for the Loan

Cereno believes that, with its extensive experience in drug development, strong expert networks, and collaborative partnerships, the company has a significant opportunity to completely transform the treatment of cardiovascular disease through its three drug candidates: CS1, CS014, and CS585. The injected capital ensures the company's ability to accelerate the development of its three innovative drug candidates toward key milestones. Additionally, it establishes favorable conditions for conducting business development activities, especially discussions concerning partnerships for the company's development programs. The proceeds from the Loan are primarily intended for:

        Strengthening and accelerating business development, partnering, and M&A activities in an optimal way.

        Creating favorable conditions for the company to negotiate with potential partners over an extended period.

        Increasing the pace in all three of the company's development programs until each program reaches its next value-adding milestone.

Statement by Sten R. Sörensen, CEO, Cereno Scientific

"We are pleased to enter into this financing solution aimed at providing the company and the portfolio with the best conditions for continued successful growth and development. We assess that, with this loan, along with the warrants of series 3 (TO3) that will be invoked in March 2024, we have secured optimal conditions to be able to maintain a strong position in discussions and potential negotiations with partners over an extended period. Furthermore, we view positively the opportunity to deliver shareholder value with greater leverage, as a strengthened cash position allows us to optimize the development of all three of our programs towards the next value-enhancing milestone for each program."

Statement by Joakim Söderström, Chairman of the Board, Cereno Scientific

"It has been vital for us to find a financing solution that allows us to accelerate the pace of development in our three development programs while significantly increasing our activities in the partnering and M&A track, with very low or no dilution to the shareholders. I also view positively that we have strengthened our negotiating position in a potential partnering discussion with a well-stocked treasury and three promising drug candidates that we will now be able to advance in development more rapidly, thus maximizing the value of our portfolio."

Loan terms

The Loan amounts to a total of SEK 90 million and is divided into two tranches of SEK 45 million each. The first payment occurs upon signing of the loan agreement, and the second payment can be made at Cereno Scientific's discretion, however no later than within a maximum of nine months from the date of the first payment, meaning on August 14, 2024. The Loan matures for payment on May 14, 2025.

The Loan is subject to a set-up fee of 5.0 percent of the Loan and carries an annual interest rate of STIBOR 3M + 10 percent of the loan amount. The interest accrues from the payment of each tranche until the loan amount along with accrued interest is repaid. The interest is due at the end of each calendar quarter and should be paid by Cereno Scientific on the last banking day of the quarter. The company has the option to repay the Loan before the maturity date without any redemption fee. The Board has assessed the loan terms as market competitive and considers taking the Loan to be in the best interest of both the company and its shareholders.

Advisors

Mangold Fondkommission AB is financial advisor and MAQS Advokatbyrå AB is legal advisor to Cereno Scientific AB in connection with the Loan.

For further information, please contact:

Tove Bergenholt, Director IR & Communications

Email: tove.bergenholt@cerenoscientific.com

Phone: +46 732-366 246

 

Sten R. Sörensen, CEO

Email: sten.sorensen@cerenoscientific.com

Phone: +46 73-374 03 74

 

This information is information that Cereno Scientific AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:59 (CET) on November 17, 2023.

About Cereno Scientific AB

Cereno Scientific develops innovative treatments for common and rare cardiovascular disease. The lead drug candidate, CS1, is a HDAC (histone deacetylase) inhibitor that acts as an epigenetic modulator with pressure-reducing, reverse-remodeling, anti-inflammatory, anti-fibrotic and anti-thrombotic properties. A Phase II study is ongoing to evaluate CS1’s safety, tolerability, and efficacy in patients with the rare disease pulmonary arterial hypertension (PAH). A collaboration agreement with global healthcare company Abbott allows Cereno to use their cutting-edge technology CardioMEMS HF System in the study. Two initiatives performed during the ongoing Phase II study have shown positive findings suggesting the potential clinical benefit of CS1 in PAH patients. These initial findings are, however, not a guarantee of the final study results that are expected in Q2 2024. Cereno also has two promising preclinical drug candidates in development through research collaborations with the University of Michigan. Investigational drug CS014 is a HDAC inhibitor in development as a treatment for arterial and venous thrombosis prevention. The innovative drug candidate represents a groundbreaking approach to antithrombotic treatment potentially without the associated increased risk of bleeding in humans. CS014 is a new chemical entity with a multi-fold mechanism of action as an epigenetic modulator – regulating platelet activity, fibrinolysis, and clot stability for the prevention of thrombosis without increased risk of bleeding as documented in preclinical studies. Drug candidate CS585 is a prostacyclin receptor agonist that has been documented in preclinical studies to target the IP receptor for prevention of thrombosis without increased risk of bleeding. The company is headquartered in Gothenburg, Sweden, and has a US subsidiary Cereno Scientific Inc. based in Kendall Square in Boston, Massachusetts, US. Cereno is listed on the Nasdaq First North (CRNO B). More information on www.cerenoscientific.com.

 

 

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