Prometic Life Sciences Inc. (TSX: PLI; OTCQX: PFSCF) has entered into a binding agreement to secure a follow-on investment from Structured Alpha LP, an affiliate of Peter J. Thomson’s investment firm, Thomvest Asset Management Inc., consisting of a $25 million loan.
As partial consideration for the loan, Prometic will grant Structured Alpha LP 10,600,407 warrants with an exercise price of $3.70 per common share, a premium of 70% to yesterday’s closing share price. The loan shall be secured by Prometic’s assets, excluding its patent portfolio. The redemption value of the Loan implies a compounded annual interest rate of 8.5%. No interest or principal shall be required to be repaid prior to July 31, 2022.
The new investment will bring Structured Alpha’s total investment in Prometic to $85 million, including $4.2 million in equity investment. Thomvest Seed Capital made an initial investment of $10 million in Prometic in September 2013. The loan was later assigned to Structured Alpha.
“Prometic is now only a few months away from officially becoming a fully integrated biopharmaceutical company with its first commercially approved drug, plasminogen, expected to be launched in Q4 this year,” said Pierre Laurin, President & CEO of Prometic. “It is key for us to remain sufficiently capitalized to execute on our corporate initiatives and clinical programs as we continue delivering on the expected catalysts events. We intend to fully leverage this follow-on investment to generate value for all our shareholders.”
“We see 2017 as a transformational year for Prometic. The commercialization of the company’s first plasma-derived therapeutic will validate its proprietary PPPS platform and should focus the market’s attention on the therapeutic pipeline it enables. Prometic is demonstrating how good strategy, innovation and execution can be combined to bring cost-effective novel therapies to patients while creating value for all stakeholders. We are proud to support Mr. Laurin and the rest of the Prometic team in their efforts,” commented Stefan Clulow, Managing Director and CIO of Thomvest and a director of Prometic.
California Capital Equity, LLC, a company controlled by Dr. Patrick Soon-Shiong, is a major shareholder of Prometic. Charles Kenworthy, EVP of Corporate Strategy, NantWorks, LLC, serves as a director of Prometic as nominee of California Capital Equity, LLC.
Dr. Soon-Shiong exercises ProMetic warrants for $74.8M gain