April 2015: London, UK – Tiziana Life Sciences plc, the clinical stage biotechnology company focused on targeted drugs to treat diseases in oncology and immunology, is pleased to announce that it has raised £6.14 million (US$9.15 million) through the issue of 8,780,905 unsecured convertible loan notes (“CLNs”) to new investors (“Noteholders”). Funds raised by the issue of the CLNs, together with the £2.55 million (US$ 3.80 million) raised through the placing of new ordinary shares on 31 March 2015, shall be used to fund the development of the Company’s clinical stage assets milciclib and foralumab, to meet the Company’s ongoing liabilities in respect of licence agreements, and for general working capital purposes.
The CLNs are redeemable by the Noteholders at any time after 25 June 2016 and will be redeemed, at the election of the Company, in cash or by conversion into new ordinary shares in the Company at a conversion price of £0.70 per share. Interest shall accrue quarterly on the CLNs at a rate of four per cent. per annum.
By way of an arrangement fee for the Noteholders agreeing to subscribe for the CLNs, the Company has granted to the Noteholders warrants to subscribe for up to 1,756,185 new ordinary shares in the Company (“CLN Warrants”) at an exercise price of £1.05 per share. The CLN warrants shall be exercisable during the period from and including 26 June 2016 to 31 December 2017.
Gabriele Cerrone, Chairman and founder of Tiziana, commented: “Our total fundraising through new shares and CLNs of £8.69 million (US$12.95 million) will allow Tiziana Life Sciences to move the exciting projects in our portfolio through to their next inflection points. These projects include the ongoing phase II clinical trials of the Company’s lead asset milciclib for thymic carcinoma, potential application of milciclib in breast cancer and liver cancer, and advancing foralumab, which has potential in a number of indications and markets.”