Press release No. 17 / 2023
Zealand Pharma enters into EUR 90 million finance agreement with the European Investment Bank
Copenhagen, Denmark, December 22, 2023 - Zealand Pharma A/S (Nasdaq: ZEAL) ("Zealand") (CVR-no. 20045078) a biotechnology company focused on the discovery and development of innovative peptide-based medicines, today announced that it has entered into a finance agreement for a loan facility of EUR 90 million from the European Investment Bank ("EIB"), the long-term lending institution of the European Union owned by its Member States.
"We are very pleased with the endorsement and support from the EIB for our investments in our R&D pipeline," said Henriette Wennicke, Chief Financial Officer of Zealand Pharma. "This loan facility will further strengthen the financial position of Zealand Pharma, enabling us to invest in our differentiated obesity assets while better positioning us to secure commercial partnerships for our rare disease assets."
The loan facility may be utilized in up to three tranches of EUR 50 million (Tranche A), EUR 20 million (Tranche B) and EUR 20 million (Tranche C), respectively, with disbursement of each tranche subject to pre-specified milestones being met. Each tranche has a term of six years from its disbursement. The loan, which has been offered at competitive terms, is structured with part of the interest paid at recurring intervals during the term and part being deferred (non-compounding) for payment at maturity of each tranche. In addition, the EIB will enter into a warrant agreement with Zealand that will entitle the EIB to receive warrants in Zealand when each tranche is drawn down. The warrants will, subject to the warrant terms, entitle the warrant holder to subscribe for ordinary shares in Zealand at market price.
The conditions for disbursement of the first tranche (Tranche A) have been met and the EUR 50 million is expected to be available to Zealand in the beginning of 2024.
Zealand Pharma was advised in this transaction by Van Lanschot Kempen.
About Zealand Pharma A/S
Zealand Pharma A/S (Nasdaq: ZEAL) ("Zealand") is a biotechnology company focused on the discovery and development of peptide-based medicines. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market and three candidates are in late-stage development. The company has development partnerships with a number of blue-chip pharma companies as well as commercial partnerships for its marketed products.
Founded in 1998 and headquartered in Copenhagen, Denmark, Zealand has a team in the U.S. For more information about Zealand's business and activities, please visit http://www.zealandpharma.com.
About the European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investment contributing toward EU policy goals. In 2022 alone, the EIB made available over €800 million in financing for projects in Denmark, including in the medical research and energy transition sectors.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union's policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
Forward-Looking Statements
This press release contains forward-looking statements that provide Zealand Pharma's expectations or forecasts of future events regarding the research, development and commercialization of pharmaceutical products. These forward-looking statements may be identified by words such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "plan," "possible," "potential," "will," "would" and other words and terms of similar meaning. You should not place undue reliance on these statements, or the scientific data presented. The reader is cautioned not to rely on these forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions, which may cause actual results to differ materially from expectations set forth herein and may cause any or all of such forward-looking statements to be incorrect, and which include, but are not limited to, the occurrence of adverse safety events; risks of unexpected costs or delays; unexpected concerns that may arise from additional data, analysis or results obtained during clinical trials; failure to protect and enforce our data, intellectual property and other proprietary rights and uncertainties relating to intellectual property claims and challenges; regulatory authorities may require additional information or further studies, or may fail to approve or may delay approval of our drug candidates or expansion of product labelling; failure to obtain regulatory approvals in other jurisdictions; and product liability claims. If any or all of such forward-looking statements prove to be incorrect, our actual results could differ materially and adversely from those anticipated or implied by such statements. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement. All such forward-looking statements speak only as of the date of this company announcement and are based on information available to Zealand Pharma as of the date of this announcement. We do not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. Information concerning pharmaceuticals (including compounds under development) contained within this material is not intended as advertising or medical advice.
Contacts:
| Adam Lange (Investors) Investor Relations Officer Zealand Pharma Email: alange@zealandpharma.com |
| Anna Krassowska, PhD (Investors and Media) Vice President, Investor Relations & Corporate Communications Zealand Pharma Email: akrassowska@zealandpharma.com |
