Kiadis Pharma secures €20 mil­lion debt financ­ing facil­i­ty from Kreos Capital

Amsterdam, The Netherlands, August 1, 2018 – Kiadis Pharma N.V. (“Kiadis Pharma” or the “Company”) (Euronext Amsterdam and Brussels: KDS), a clin­i­cal stage bio­phar­ma­ceu­ti­cal com­pa­ny devel­op­ing a T-cell immunother­a­py prod­uct can­di­date designed to reduce Graft ver­sus Host Disease (GVHD) and relapse after hematopoi­et­ic stem cell trans­plan­ta­tions (HSCT), today announces that it has received a new debt facil­i­ty from Kreos Capital pro­vid­ing the Company with up to €20 mil­lion of addi­tion­al financ­ing. This is in addi­tion to the Company’s €15 mil­lion debt financ­ing from Kreos Capital in 2017.

The new loan con­sists of two tranch­es, with the first tranche of €5 mil­lion being imme­di­ate­ly drawn down and a sec­ond tranche of up to an addi­tion­al aggre­gate amount of €15 mil­lion, which Kiadis Pharma can at its option draw down until March 31, 2019, con­di­tion­al on the Company hav­ing received a pos­i­tive opin­ion from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency for the Company’s T-cell prod­uct can­di­date ATIR101. Kiadis Pharma will use funds drawn down under the debt facil­i­ty to advance the Phase 3 clin­i­cal devel­op­ment of ATIR101, to pre­pare for a pos­si­ble com­mer­cial launch in Europe and for gen­er­al cor­po­rate pur­pos­es. If drawn down in full, this new €20 mil­lion debt facil­i­ty would extend the Company’s cash run­way into the first quar­ter of 2020.

Arthur Lahr, CEO of Kiadis Pharma, com­ment­ed: “This addi­tion­al agree­ment with Kreos Capital gives us the option to com­fort­ably extend our cash run­way into the first quar­ter of 2020, with lim­it­ed dilu­tion, once we have received the antic­i­pat­ed opin­ion from the CHMP in the fourth quar­ter of 2018.

Maurizio PetitBon, General Partner of Kreos Capital, com­ment­ed: “Kiadis Pharma is advanc­ing treat­ment in the field of allo­gene­ic hematopoi­et­ic stem cell trans­plan­ta­tions and has the poten­tial to improve the out­comes of patients suf­fer­ing from blood can­cers. We are proud to extend our rela­tion­ship with Kiadis Pharma as they enter the next phase to fur­ther dri­ve the devel­op­ment of ATIR101.

About the loan agree­ment
Draw down
Tranche A: €5 mil­lion upon clos­ing
Tranche B: loans of up to an aggre­gate addi­tion­al amount of €15 mil­lion may be drawn down at the option of the Company pri­or to March 31, 2019, con­di­tion­al on the Company receiv­ing a pos­i­tive opin­ion for ATIR101 from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency

Term
Tranche A: 45 months
Tranche B: 48 months

Repayment
Tranche A: Interest only for the first 9 months, with the remain­ing 36 months amor­tiz­ing in equal month­ly instal­ments com­pris­ing prin­ci­pal and inter­est
Tranche B: Interest only for the first 12 months, with the remain­ing 36 months amor­tiz­ing in equal month­ly instal­ments com­pris­ing prin­ci­pal and inter­est

Interest
9% annu­al fixed inter­est rate

End of loan pay­ment
5% of the amount drawn down

Structure
Security over assets includ­ing IP; no finan­cial covenants

Warrants
In con­nec­tion with the draw­down of Tranche A, at clos­ing the Company grant­ed 41,212 war­rants giv­ing Kreos Capital the right to sub­scribe for 41,212 new Company shares at a price of €9.71 per share
In con­nec­tion with any poten­tial draw­downs under Tranche B, Kreos Capital is enti­tled to receive war­rants to pur­chase new Company shares worth 8% of the amounts drawn down under Tranche B, with the exer­cise price being the aver­age 10-day clos­ing share price pri­or to the date the Company deliv­ers a draw­down request to Kreos Capital.
The war­rants can be exer­cised over a 5-year peri­od after grant.