ADL Bionatur Solutions, together with its main shareholder BTChave started conversations with both financial and industrial investors for one injection of funds of 10 million euros, as reported by the biotechnology company to the Alternative Stock Market (MAB).
The company has also communicated to MAB the renewal of the financing agreement with Kartesia Securities August 2019, with the commitment to achieve a new refinancing framework before July 30.
Specifically, ADL Bionatur Solutions has signed new agreements with Kartesia Securities that renew the financing contract that they announced on August 12, 2019, for the amount of 25 million euros.
“The ultimate goal of the new agreements is to refinance the debt, allowing the development of the company’s business model, as well as avoiding a future scenario of treasury stress that could lead to breach of contracts. In parallel, a capitalization requirement is established that seeks to facilitate the execution of the company’s strategic plan, “says the biotechnology company.
Through this new agreement, ADL Biopharma (a subsidiary of ADL Bionatur Solutions) has the option of accessing additional financing, and together with BTC, the majority shareholder of the company, and Kartesia, they agree to sign a framework agreement for debt refinancing before July 30, 2020.
According to the relevant fact published, the parties begin to work together on this refinancing plan starting this Monday.
At the same time, BTC agrees to carry out a liquidity injection of 10 million euros in ADL Biopharma before this date, an injection that can be made in the form of own funds or subordinated debt directly by BTC or through other structures agreed with potential investors.
In this sense, BTC and ADL have explained that “as of the date of publication of this information, they have already begun conversations with both financial and industrial investors, to comply with this requirement, and the result of which will be communicated to the market if it materializes.”
“The objective of this measure is not only to comply with this temporary requirement, but to lay the foundations to reinforce the financial position of the company with a view to executing its strategic plan,” said the firm.
The CEO of ADL Bionatur Solutions, Jaime Feced, advanced last week at the MedCap 2020 Forum, organized by Spanish Stock Exchanges and Markets (BME), which the company has been working on in recent months in the consolidation of a more sustainable business model over time, and with new opportunities for collaboration and alliances with new industrial partners.
Among the new agreements published this Monday, Kartesia agrees for its part not to take any action until June 30, 2020, in relation to the financing agreement for the amount of 25 million euros, signed in August 2019.
Likewise, the new agreements reached with Kartesia include a new alternative financing contract available to ADL Biopharma, for an amount of 1.89 million euros, although ADL Bionatur Solutions itself has explained that it is more a preventive measure before the Current global economic environment, because “the current cash situation of ADL Biopharma, as well as the forecasts for the coming months, means that the use of this additional financing is not expected.”