Molecular diagnostics company Epigenomics has entered into a €5m convertible bond financing agreement with YA Global Master SPV Ltd.
Pursuant to the terms of the agreement, YA Global Master SPV will purchase convertible notes with a total nominal amount of €5m at a purchase price of 95% of the nominal amount, over a period of up to two years.
Epigenomics may issue the convertible notes in tranches of €500,000 each at its sole discretion, but these convertible notes will only be issued and may only be traded in lots with a total nominal value of €125,000.
A tranche comprises 500 convertible notes in the form of bearer bonds each with a nominal value of EUR 1,000 and are transferable only upon approval of Epigenomics.
The bonds will be issued without pre-emptive rights to existing shareholders and carry no interest, have a term of nine months and are convertible into shares of Epigenomics immediately upon issuance at the discretion of the bearer of the bonds.
Epigenomics CEO/CFO Dr Thomas Taapken said the positive agreement with Yorkville provides the company with a flexible financing tool that will help to improve the financial situation of the company ahead of the FDA approval decision for its lead product Epi proColon, which the company still awaits in 2013.
"We will consider alternative financing options in parallel," Taapken added.
Epi proColon is a blood-based test for the detection of colorectal cancer.
