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Introduction
Mithra, a leading pharmaceutical company, has recently announced its access to a new tranche of the Highbridge/Whitebox loan facility. This development marks a significant milestone for the company as it continues to secure funds for its ongoing operations and growth initiatives. In this article, we will delve into the details of this financing arrangement, highlighting the key terms of the loan facility and the implications for Mithra's future prospects.
Background: The Initial Loan Facility
On 8th August 2022, Mithra entered into an initial three-year term senior secured convertible facilities agreement with the Lenders, enabling it to raise up to EUR 100 million. The agreement stipulated two tranches, with the first tranche of EUR 50 million drawn upon signing and the second tranche of EUR 25 million drawn on 31st October 2022. As of now, a principal amount of EUR 48,860,161.29 remains outstanding from the amounts already drawn under the loan facility1.
Formalization of Amendments to the Loan Facility
Mithra recently formalized the amendments to the loan facility that were announced on 25th May 2023. These amendments encompass several key changes, including access to a new tranche of EUR 12.5 million, a conversion price adjustment for the principal amount of the convertible loans, and an increase in the interest of the loans1.
The access to the new tranche of EUR 12.5 million provides Mithra with additional capital to support its strategic initiatives and further bolster its financial position. The change in the conversion price from a floating conversion price to a fixed conversion price, subject to customary anti-dilution and takeover protections, enhances the clarity and stability of the loan terms. Moreover, the increase in the interest of the loans reflects the lenders' confidence in Mithra's prospects and underscores the attractiveness of the investment opportunity2.
Completion of the Drawdown and Commitment Fee
Mithra expects the completion of the drawdown of the new tranche in the coming days, enabling the lenders to receive the final portion of the commitment fee. The commitment fee, representing 25% of an aggregate amount of EUR 2,911,372.65, will be settled in the form of shares of the company. Specifically, the lenders will receive 91,663 shares of Mithra at a price per share of EUR 7.94012.
This mechanism aligns the interests of the lenders with the long-term success of Mithra and incentivizes them to support the company's growth trajectory. By settling the commitment fee through share issuance, Mithra not only conserves its cash resources but also strengthens its shareholder base, potentially attracting new investors who view the lenders' participation as a vote of confidence in the company3.
Board Approval and Extraordinary General Shareholders' Meeting
To facilitate the drawdown of the new tranche, the board of directors of Mithra held a meeting to approve the amended conversion features of the loan facility. The authorized capital of the company, amounting to up to EUR 19 million (excluding issue premium, if applicable), will be utilized for this purpose. The relevant reports of the board of directors and statutory auditor, prepared to support this decision, will be made available on the company's website3.
Additionally, Mithra plans to convene an extraordinary general shareholders' meeting to seek approval for the issuance of additional new shares that will cover the amended conversion feature of the loans. This step ensures transparency and governance in Mithra's operations, allowing shareholders to participate in the decision-making process and contribute to the company's strategic direction4.
Conclusion
Mithra's access to the new EUR 12.5 million tranche of the Highbridge/Whitebox loan facility represents a significant milestone for the company. With the formalization of amendments to the loan facility and the forthcoming drawdown, Mithra is well-positioned to continue its growth trajectory and execute its strategic initiatives. The increased capital infusion, along with the support of the lenders, strengthens Mithra's financial position and enhances its ability to deliver innovative healthcare solutions to patients worldwide. As the company moves forward, the upcoming extraordinary general shareholders' meeting will provide an opportunity for shareholders to contribute to Mithra's journey and shape its future direction.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult with a professional advisor before making any investment decisions.
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