Biotie renews SEDA agreement with YA Global
Biotie has renewed its Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV Ltd., a fund managed by Yorkville Advisors, LLC of Jersey City, New Jersey, USA. Under the terms of the agreement, Biotie has the option under certain conditions to take up YA Global's commitment to subscribe and pay for ordinary Biotie shares in multiple tranches up to a total value of 20 million euro over the period until November 2015.
The purpose of the Standby Equity Distribution Agreement is to secure the financing of Biotie's working capital in the short and medium term. It remains at the sole and exclusive discretion of Biotie to exercise this option.
Timo Veromaa, Chief Executive Officer of Biotie commented, "We have found the SEDA with Yorkville an innovative and flexible financing tool. While we have not used the facility extensively in the past, and do not plan to use it in the near term, it is prudent in these financial markets to have access to multiple sources of capital and so we are pleased to renew this arrangement for a further 3 years."
The terms of the renewed SEDA follow the previous SEDA agreement published on 23 October 2009. In consideration of the committed standby equity Biotie will pay to YA Global a one-time commitment fee of EUR 200,000 either in cash or shares
The Net loss of Biotie for the period January-June 2012 was 14,5 million euros. It is 2 million more referred to the same period in the previous year. Revenues was 0,4 million which is half of the period January-June 2011. At the same time the research and development costs increased obviously. Liquid assets at the end of period were 18.5 million euros. A year before they were 40,9 million euros.
Biotie entering important milestones
Timo Veromaa, Biotie's President and CEO commented: "We are entering important times for the company as we await the decision on EU approval for Selincro, partnered with Lundbeck, and as we near data from our phase 2b trial in Parkinson's disease with tozadenant, now expected around year end. Significant investments during H2 2012 in the rest of the pipeline will be held back until we reach these two inflection points. We continue to pursue partnerships and have received significant interest in SYN120, our 5-HT6 antagonist, and believe we can find an attractive partner for this compound."