Pharming redeems part of convertible bond
Biotech company Pharming Group NV ("Pharming" or "the Company") (NYSE Euronext: PHARM) today announced that it has redeemed part of its EUR8.4 million convertible bond. A total of 38.9 million shares were issued to the bondholders under the terms and conditions of the bond, serving as a pre-installment for the February 6, 2012 redemption and interest payment, with the balance to be held for subsequent redemptions, if elected to be paid in shares. It is expected that the shares will be admitted to listing and trading on Euronext Amsterdam on January 9, 2012.
As announced in our press release on December 23, 2011, subject to the approval of the proposed increase of the Company's authorized share capital during the extraordinary general meeting to be held on February 3, 2012, Pharming will redeem the bond on a month by month basis such that the bond will be redeemed in full on July 15, 2012. Pharming can decide at its discretion to redeem the bond and pay the interest due, by means of monthly equity tranches or cash payments.
The new funds from this transaction strengthen the balance sheet and enable the Company to extend its cash runway beyond the anticipated read out of Study 1310. As has been previously disclosed, the successful read out of this trial is associated with a $10 million milestone from Pharming's US partner Santarus Inc, with an additional $5 million due upon acceptance of the Biologic License Application (BLA) by the FDA. Subject to these milestones, the Company will be financed into 2013. This guidance excludes any additional cash inflows from further partnering agreements on Rhucin® and the transgenic platform and the continuing roll-out of Ruconest® in Europe.
As of today, the number of outstanding shares has increased to 528,995,524
