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4SC AG. (6/5/14). "Press Release: 4SC Secures Financing with Shareholder Loan of up to EUR 10 Million".

Organisations Organisation 4SC AG
  Group 4SC (Group)
  Organisation 2 Santo Holding (Deutschland) GmbH
  Group STRÜNGMANN Group (family Strüngmann)
Products Product resminostat (4SC-201)
  Product 2 clinical research
Index term Index term 4SC–Strüngmann Group: credit, 201406–201612 loan of up to €10m w 8% interest from Santo Holding (Deutschland) GmbH
Persons Person Orlowski, Jochen (MorphoSys 201512– Corp Communications + IR Relations before 4SC AG + Süd-Chemie)
  Person 2 Arnold, Katja (MC Services 201309 CIRO Executive Director before Wilex AG + CAT Consultants)
     


4SC AG (Frankfurt, Prime Standard: VSC) today agreed a loan of up to EUR 10 million with its shareholder Santo Holding (Deutschland) GmbH, Holzkirchen, earmarked for financing the costs of preparing for a planned clinical trial of the drug resminostat in the liver cancer indication and for financing the ongoing administrative costs of 4SC AG.

As per its financial planning, 4SC can draw down credit lines in tranches until 31 December 2015. The loan carries interest of 8% p.a. (maturity date) and runs until the end of 2016. Upon receipt of certain financing, e.g. from licensing agreements for 4SC drug candidates with pharmaceutical companies, the contract stipulates early repayment and, under certain conditions, a reduction in the available loan amount. If 4SC AG were to carry out a large cash capital increase during the loan term, it would also have the option of repaying that portion of the loan which has already been utilised by issuing new shares through a concurrent non-cash capital increase based on the same terms as the cash capital increase.

The loan agreement contains the usual rights of Santo to terminate the agreement for cause as well as certain obligations that limit 4SC's ability to obtain additional borrowings (with the exception of standard supplier loans, among others) and require approval for larger investments. The loan is secured by way of assignment as security of the proceeds from the sale of certain intangible assets of 4SC, with 4SC still entitled to make decisions about the use and sale of such assets during the term until one month after the loan receivables have become due under the agreement. If the loan is not repaid until the end of its term, 4SC will grant Santo options for acquiring 4SC Discovery GmbH or certain assets of 4SC Discovery GmbH at market value. The sales proceeds will be used to repay the loan.

Ad hoc ends

Information and Explaination of the Issuer to this News:


About 4SC

The Group managed by 4SC AG (ISIN DE0005753818) discovers and develops targeted, small-molecule drugs for treating diseases with high unmet medical needs in various cancer and autoimmune indications. These drugs are intended to provide innovative treatment options that are more tolerable and efficacious than existing therapies, and provide a better quality of life. The Company's pipeline comprises promising products that are in various stages of clinical development. 4SC's aim is to generate future growth and enhance its enterprise value by entering into partnerships with leading pharmaceutical and biotech companies. Founded in 1997, 4SC had a headcount of 64 employees (55 FTEs) at 31 March 2014. 4SC AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since December 2005.


Cautionary statement regarding forward-looking statements


This press release contains certain forward-looking statements. Any forward-looking statement applies only on the date of this press release. By their nature, forward-looking statements are subject to a number of known and unknown risks and uncertainties that may or may not occur in the future and as a result of which the actual results and performance may differ substantially from the expected future results or performance expressed or implied in the forward looking statements. No warranties or representations are made as to the accuracy, achievement or reasonableness of such statements, estimates or projections, and 4SC AG has no obligation to update any such information or to correct any inaccuracies herein or omission herefrom which may become apparent.

For more information please visit www.4sc.de or contact:

4SC AG
Jochen Orlowski, Corporate Communications & Investor Relations
jochen.orlowski(at)4sc.com, Tel.: +49-89-7007-6366

MC Services
Katja Arnold, Michelle Kremer
katja.arnold(at)mc-services.eu, Tel.: +49-89-2102-2840

The Trout Group
Chad Rubin
crubin(at)troutgroup.com, Tel.: +1-646-378-2947

   
Record changed: 2017-04-02

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