Biotech – Idorsia successfully places new shares and convertible bonds | new

On the stock market, Idorsia shares are passed to the news after the news. Specifically, the major shareholders Jean-Paul and Martine Clozel 28.4 percent of the shares and 28.4 percent of the convertible bonds acquired, as the company announced Wednesday. Shares with a par value of 0.05 francs were issued at 25.62 francs per new guarantee. This resulted in gross proceeds of 305 million Swiss francs

The new shares, which represent about 10% of Idorsia's current share capital, come from Idorsia's existing authorized capital. The Company anticipates that the listing and listing of Shares placed on the SIX Swiss Exchange will take place on or about July 13, 2018.

Maturity Bond in 2024

Convertible Senior Notes unsecured Amounts of 200 million Swiss francs are due in 2024 and are convertible into 5.9 million registered shares of Idorsia. The convertible bonds have a coupon of 0.75% and a conversion price of 33.95 Swiss francs, corresponding to a convertible premium of 32.5% higher than the offer price of the shares placed.

The convertible bond expires on July 17, 2018. The offer to trade and negotiate the convertible bond will be submitted later, continues Idorsia

The net proceeds of the competing offers will allow Idorsia to complete Phase 3 trials of its terminal development pipeline with approcitentan, clazosentan, lucerastat and nemorexant In addition to funding the development of its diversified portfolio of early-stage candidates in a variety of therapeutic areas, it continues

High Levies

The stock market reacted to the news in a weaker global market with above-average market prices. Until around 9:20, Idorsia shares lost 5.5% to 25.48 Swiss francs. In contrast, the total market (SPI) lost only 1.19%. To date, 227,883 shares have been traded for an average of 355,743 shares per trading day.

The new funds are not yet high enough for Idorsia to break even, writes Stefan Schneider of Bank Vontobel. It was therefore clear that the company would accept additional funds. Schneider expects the next round of financing to follow in 2019. After all, according to the analyst, Idorsia now has enough strategic flexibility to manage its money consumption.

(AWP)