Strategic investments from two specialist US healthcare investors for continued development of ImmuPharma’s therapeutic pipeline

ImmuPharma PLC (LSE AIM: IMM – Euronext Growth: ALIMM), the specialist drug discovery and development company, is pleased to announce that it has entered into agreements with two specialist US healthcare investors for a total investment of up to $6.30 million (£4.94 million) comprising an issue of unsecured convertible securities (“Securities”) and associated options (“Options”).

Highlights

• ImmuPharma is to issue $3 million (£2.35 million) in face value of Securities to two US specialist healthcare investors, L1 Capital Global Opportunities Master Fund and Lind Global Macro Fund LP, managed by The Lind Partners, LLC (“the Investors”) with a maturity period of 18 months.
• At any time, during the maturity period, the Investors may convert their Securities (in whole or in part) to 13,086,619 ordinary shares in the Company, in aggregate, at a price of 17.96p (“Conversion Price”) which is equivalent to 120% of the Volume Weighted Average Price (“VWAP”) of the ordinary shares for 09 June 2020.
• During the maturity period, the Company may require the investors to convert their securities to ordinary shares, if the VWAP on each of at least 20 consecutive trading days shall be equal to or have exceeded 35.92p (200% of the Conversion Price).
• Should any securities remain unconverted on 10 December 2021 the Company will repurchase, from the Investors, the outstanding face value of the unconverted Securities.
• In addition, the Investors have been granted 15,703,942 Options in the Company, which may be exercised at any time up to 3 years, with an exercise price the same as the Conversion Price, which, if all exercised, would amount to $3.60 million (£2.82 million).
• The initial net proceeds of the Securities (after subscription and expenses) received by the Company of $2.39 million (£1.87 million) and any additional funds received of up to $3.60 million (£2.82 million), following exercise of the Options, will be used primarily to fund:
  – Continued expansion of the Company’s R&D programmes; and
  – General working capital

Commenting, ImmuPharma’s Chairman, Tim McCarthy, said:

“We are delighted to welcome L1 Capital Global Opportunities Master Fund and Lind Global Macro Fund LP as new investors into ImmuPharma. This is the first significant investment from specialist US healthcare funds and illustrates the attention we are now receiving from knowledgeable global investors. It particularly exemplifies the strengthened investment thesis of ImmuPharma, as we continue to strengthen and progress our recently expanded development pipeline to value inflexion points, including Lupuzor™ and the partnership with  Avion Pharmaceuticals, as we prepare for the start of a new international optimised Phase III trial, in lupus patients”.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (“MAR”). In addition, market soundings (as defined in MAR) were taken in respect of the Subscription with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR.  This inside information is set out in this Announcement.  Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.

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