CHOSA Oncology AB payback of convertible loan in process - update
CHOSA Oncology AB has as previously announced initiated the process of payback of the convertible loan of 14,98 mSEK (plus interest) SEK which RhoVac obtained from shareholders to support the development of RV001. The process is unfortunately more complex than anticipated, which causes a delay. There have been many questions about the calculation of the interest and below is a clarification.
The original loan was 24.979.760 SEK, and a partial refund of 10.000.000 SEK was paid back on August 29th, 2022. The interest rent is 10% and CHOSA will pay 5 months of interest on the full amount and 7 months of interest on the remaining 14.979.760 SEK. We use the calculation 138 days from April 11th, 2022, to August 29th, 2022. Accordingly, the loan givers interest per 1000 SEK loan is:
1000 SEK * 138 days / 360 days * 10% = 38,33 SEK
After the first repayment, the 1000 SEK loan is now (14.979.760 SEK / 24.979.760 SEK = 0,59968)
= 599,68 SEK. The interest on this amount is 10% for the remaining 7 months 222 / 360 days * 599,68 * 10% = 36,98 SEK.
Accordingly, the interest on the initial loan of 1000 SEK is 38,33 + 36,98 SEK = 75,31 SEK.
The loan repayment is part of the original financial agreement with RhoVac and CHOSA is working diligently to finalize this process as soon as possible as this will benefit loan givers, investors, and CHOSA.
CEO Peter Buhl comments: "We are sorry about the inconvenience and problems that loan givers have experienced. As the money transfer involves several banks and financial service institutions and furthermore is a cross-border transfer the process has been more complex than we - who have taken over RhoVac - had expected."
For additional information contact:
Peter Buhl Jensen, CEO
pbj@buhloncology.com
+ 45 21 60 89 22
CHOSA in short
CHOSA Oncology AB is an oncology biotechnology company led by a proven international team with veteran specialists in oncology; drug development; running clinical trials; regulatory expertise; and business development. CHOSA intends to enter into agreements for partnership or sublicensing of iCIP™.
About iCIP™
CHOSA is focused on late-stage clinical development of iCIP™ (LiPlaCis® and its DRP® companion diagnostic together) to which it has worldwide rights. The cisplatin DRP is the only proven test to foresee and thereby select who to treat and who will benefit from cisplatin.
In essence, iCIP™ combines the identification of patients that will benefit from cisplatin treatment with the ability to treat them with higher efficacy and less toxicity. We have strong phase 2b data in metastatic breast cancer, demonstrating that patients selected by DRP® responded better to treatment; have longer progression-free survival; and maybe even an overall longer total survival than those patients who were identified as unlikely to respond well to the treatment. The cisplatin DRP has previously shown its ability to foresee the value of cisplatin therapy in lung cancer. Cisplatin therapy after surgery is a gold standard that clearly increases lung cancer cure, but not always, and until now the doctors do not know who will benefit from cisplatin and who should have something else. This is where the cisplatin DRP is a potential game changer. Cisplatin DRP was validated in a blinded retrospective study in two lung cancer patient cohorts receiving cisplatin after surgery to kill remaining tumor cells. Thus, patients with the 10% highest scores had a 3-year survival of 90% whereas the patients with the lowest 10% score had much lower survival with only 40% surviving 3 years1.
1) Buhl et al PLOS One doi: 10.1371/journal.pone0194609
DRP® is a registered trademark of Allarity Therapeutics, Inc., and is used under license granted to CHOSA.
LiPlaCis is in-licensed from Allarity Therapeutics Ltd (previous Oncology Venture ApS) and LiPlasome Pharma ApS.