(Boursier.com) — GeNeuro SA and the European Investment Bank (EIB) announce, on March 7, the signing of a loan for a total amount of 25 million euros.
GeNeuro launched a Phase 2 trial at the end of 2022 which evaluates the clinical efficacy of a six-month treatment with temelimab, the anti-W-ENV antibody developed by GeNeuro, on the improvement of cognitive disorders and/or fatigue in patients with long COVID who are positive for the presence of the protein W-ENV in their blood. The W-ENV protein has been observed in more than 25% of patients with persistent syndromes after having COVID. This personalized medicine approach could, if the ongoing clinical trial is successful, offer a therapeutic solution to millions of patients affected by long COVID.
The credit of 25 ME is divided into three tranches: 7 ME for the first tranche (Tranche A), 10 ME for the 2nd tranche (Tranche B) and 8 ME for the 3rd tranche (Tranche C). The disbursement of each of the tranches, including the first disbursement of Tranche A, is subject to certain conditions.
The three tranches will be available for 36 months from the signing of the Financing Contract.
The credit agreement will be accompanied by a fixed annual interest rate of 2% for each tranche as well as a decreasing capitalized interest rate per tranche, 7% for Tranche A, 5% for Tranche B and 2 .5% for Tranche C, with a maturity of 5 years for each tranche. This interest will be capitalized annually, payable at maturity and incorporated into the nominal value of the loan, and therefore bears interest.
The credit agreement is supplemented by a BSA issue agreement concluded between GeNeuro SA and the EIB, representing 2.4% of the diluted share capital of GeNeuro SA for Tranche A, 2% of the diluted share capital of GeNeuro SA for the Tranche B, and 1.3% of the diluted share capital of GeNeuro SA for Tranche C. Given the stock options existing today, if Tranche A of the BSAs were issued today under the conditions currently proposed, the dilution potential represented by the underlying shares, would be approximately 2.50% of the current share capital of the Company.
The BSAs will have a maturity of 7 years, renewable once.