NEW YORK (GenomeWeb News) – Hybrigenics, a French biopharmaceutical and life science tools firm, has signed a three-year equity facility agreement with Yorkville Advisors, under which Hybrigenics could receive up to €5 million ($7.3 million).
The equity facility is subject to approval at the next extraordinary general meeting of Hybrigenics, which is expected to be called on Oct. 23, the firm said.
Under the terms of the deal, Hybrigenics has the option to request that Yorkville's YA Global Master SPV fund subscribe to and purchase newly issued shares in tranches of up to €200,000 per tranche, with a maximum of one tranche per week. Yorkville will not hold more than 9.9 percent of the share capital of Hybrigenics, according to the terms of the agreement.
The issue price of the new shares will be set at 95 percent of the lowest daily volume-weighted average share price of the five trading days following the date on which Hybrigenics sends to Yorkville the relevant draw down notice. The price also may not be less than 80.75 per cent of the daily volume-weighted average price of Hybrigenics shares on the last trading day prior to such date.
Hybrigenics may draw up to €5 million from Yorkville pursuant to the agreement. The investment firm can either sell the shares in the market or can accumulate them, said Hybrigenics. However, Yorkville also has committed not to short sell or enter into any hedging transactions related to Hybrigenics' stock.
"This agreement provides us with the flexibility to raise finance through equity at our discretion, whilst minimizing dilution for our shareholders," Hybrigenics CEO Remi Delansorne said in a statement. "We feel our cash needs for running our internal cancer research and for preparing for the next stage of the clinical development of inecalcitol, are now well secured."