Mereo BioPharma Group plc £10m credit facility drawdown & issue of warrants (6367A)

TIDMMPH

RNS Number : 6367A

Mereo BioPharma Group plc

02 January 2018

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Mereo BioPharma Group plc

("Mereo" or the "Company" or the "Group")

GBP10 million credit facility drawdown and issue of warrants

Second and final tranche of credit facility drawn

London, January 2, 2018 - Mereo BioPharma Group plc (AIM: MPH), a multi-asset biopharmaceutical company focused on the acquisition, development and commercialisation of innovative therapeutics that aim to improve outcomes for patients with rare and specialty diseases, is pleased to announce that on December 29, 2017 it drew down the second and final GBP10 million tranche of the credit facility set up in August 2017 with Silicon Valley Bank and Kreos Capital (the "lenders").

With its existing cash position, together with this drawdown of the remainder of its credit facility, Mereo has a strong balance sheet with sufficient cash resources to fund its key clinical programmes.

The terms are as previously disclosed and are typical for facilities of this type and include an interest only period to September 30, 2018, a thirty-month capital and interest repayment period thereafter, a competitive high single digit headline interest rate and customary security over assets of the Group.

In connection with the drawdown, on December 29, 2017 the Company issued warrants giving the lenders the right to subscribe for 333,334 shares at a price of 330 pence per share, currently equivalent to approximately 0.5% of the issued share capital of the Company. These warrants will be capable of exercise until August 21, 2027.

Ends

For Further Enquiries:

 
 Mereo BioPharma Group plc         [phone] 
 Denise Scots-Knight, Chief 
  Executive Officer 
 Richard Jones, Chief Financial 
  Officer 
 
 Nominated Adviser and Joint 
  Broker 
  Cantor Fitzgerald Europe         [phone] 
 Phil Davies 
 Will Goode 
 
 Joint Broker 
  RBC Capital Markets              [phone] 
 Rupert Walford 
 Laura White 
 
 Public Relations Adviser to 
  Mereo 
  FTI Consulting                   [phone] 
 Ben Atwell 
 Simon Conway 
 Brett Pollard 
 
 US Public Relations Advisor 
  to Mereo                             +01 (0) 212 213 
  Burns McClellan                                 0006 
 Lisa Burns 
 Steven Klass 
 

About Mereo

Mereo is a multi-asset biopharmaceutical company focused on the acquisition, development and commercialization of innovative therapeutics that aim to improve outcomes for patients with rare and specialty diseases. The portfolio consists of four clinical-stage product candidates, each of which were acquired from large pharmaceutical companies: BPS-804 for the treatment of osteogenesis imperfecta, or OI; AZD-9668 for the treatment of severe alpha-1 antitrypsin deficiency, or AATD; BGS-649 for the treatment of hypogonadotropic hypogonadism, or HH, in obese men; and BCT-197 for the treatment of acute exacerbations of chronic obstructive pulmonary disease, or AECOPD. Each of the Company's product candidates has generated positive clinical data for the target indication or in a related disease. The Company's strategy is to selectively acquire product candidates that have already received significant investment from pharmaceutical companies and that have substantial preclinical, clinical and manufacturing data packages. Since inception the Company has commenced large, randomized, placebo-controlled Phase 2 clinical trials for three of the product candidates and announced positive top-line results from its Phase 2 clinical trial of BCT-197 as an acute therapy for patients with acute exacerbations of chronic obstructive pulmonary disease in December 2017. The Company intends to commence additional late-stage clinical trials in 2018.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 02, 2018 02:00 ET (07:00 GMT)