LEIDEN, NETHERLANDS--(MARKET WIRE)--Dec 8, 2008 -- Leiden, The Netherlands, December 8, 2008. Biotech company Pharming Group NV ("Pharming" or "the Company") (NYSE Euronext: PHARM) announced today that it has reached an agreement with several holders of convertible bonds to cancel outstanding debt by payments in cash and shares.
Convertible bonds with a nominal value of EUR 20.1 million will be cancelled by a payment of EUR 3.8 million and conversion of the remaining EUR 16.3 million in shares at a valuation of EUR 2.64 per share. Total shares issued in relation to the conversion are approximately 6.2 million, increasing the Company's number of outstanding shares after conversion to 97.4 million.
Convertible bonds with a total nominal value of EUR 70 million were issued by Pharming in October 2007. They have a 5 year lifetime and yield an annual nominal interest of 6.875%. Due to conditions in the global financial markets, several holders of these bonds have expressed their desire to redeem the bonds at an early stage albeit at a significant discount. Pharming considers this situation as an opportunity to strengthen its balance sheet at favorable terms for the Company.
Dr. Sijmen de Vries, Chief Executive Officer at Pharming, commented: "The transactions announced today are an important step in improving our balance sheet by reduction of debt and by increasing our equity position. We have been able to satisfy the short term needs of some of the convertible bond holders by combining them with our intention to strengthen our financial position. In addition, this debt settlement reduces our annual bond interest payments by approximately EUR 1.4 million. We look forward to arranging similar deals with other holders of convertible bonds. Pharming is well positioned for further growth with an improving balance sheet, promising products nearing the market, strong partnerships and a relatively strong financial position.
Given the favorable terms of this deal, the recent EUR 20 million Lactoferrin licensing agreement and the existing financial condition of the Company, its cash position is more than sufficient to execute the current transaction. Pharming is, however, still considering options to improve its financial position further. Such options include (combinations of) project-specific financing, licensing deals, loans and limited equity transactions."‹
Market Data 
Markets 
AI
