Pharming Redeems Third Tranche Of Convertible Bond
Leiden, The Netherlands, March 12, 2012. Biotech company Pharming Group NV (“Pharming” or “the Company”) (NYSE Euronext: PHARM) today announced that it has redeemed the third tranche of its €8.4 million convertible bond. A total of 20,206,800 shares were issued to the bondholders under the terms and conditions of the bond, serving as a pre-installment for the April 15, 2012 redemption and interest payment. A further three tranches remain to be repaid.
As announced in our press release on December 23, 2011, and following the approval of increase of the Company’s authorized share capital during the extraordinary general meeting of shareholders, which was 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 557,553,470.
