Mereo BioPharma Group plc Revised Credit Facility and Issue of Warrants (5068C)

TIDMMPH

RNS Number : 5068C

Mereo BioPharma Group plc

01 October 2018

Mereo BioPharma Group plc

("Mereo" or the "Company")

Revised Credit Facility and Issue of Warrants

London, 1 October 2018 - Mereo BioPharma Group plc (AIM: MPH), a clinical stage UK based biopharmaceutical company focused on rare diseases, is pleased to announce that on 28 September, 2018 it completed a positive revision to the terms of a credit facility originally set up in August 2017 with Silicon Valley Bank and Kreos Capital (the "Lenders").

The original terms of the loan were previously disclosed and are typical for facilities of this type. The revised terms now include an extension to the interest only period from September 30, 2018 to April 30, 2019, the potential to further extend both the interest only and the capital repayment periods and a reduction in the interest rate from 9% to 8.5%.

In connection with the revised facility agreement, the Company has issued warrants giving the Lenders the right to subscribe for 225,974 shares at a price of 231 pence per share, currently equivalent to approximately 0.3% of the issued share capital of the Company. These warrants will be capable of exercise from issue until October 1, 2028.

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

Enquiries:

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

About Mereo BioPharma

Mereo is a biopharmaceutical company focused on the development and commercialization of innovative therapeutics that aim to improve outcomes for patients with rare diseases. The portfolio currently consists of four clinical-stage product candidates, each of which were acquired from large pharmaceutical companies: BPS-804 (setrusumab) for the treatment of osteogenesis imperfecta ("OI"); MPH-966 (alvelestat) for the treatment of severe alpha-1 antitrypsin deficiency ("AATD"); BCT-197 for the treatment of acute exacerbations of chronic obstructive pulmonary disease, ("AECOPD"); and BGS-649 for the treatment of hypogonadotropic hypogonadism ("HH") in obese men. Each of the Company's product candidates has generated positive clinical data for Mereo's target indication or in a related indication. 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 has previously announced positive top-line results from two of its clinical trials: a Phase 2 trial with BCT-197 in December 2017 and a Phase 2b dose-ranging study with BGS-649 in March 2018.

About Kreos Capital

Kreos was founded 20 years ago with the single mission of pioneering unique financing solutions for high-growth companies across Europe and Israel. Since then, Kreos has committed more than EUR2 billion in over 500 portfolio company transactions, in a variety of industry sectors and located in 15 countries.

Kreos has worked with public and private companies at all stages of development offering everything from operational runway extensions through acquisition financing. Kreos understands the needs of high-growth companies and the unique challenges that they face as global competitors. The common threads of our approach include operational flexibility, patience and commitment to creating value, to meet the real-world demands of growing businesses.

About Silicon Valley Bank

For more than 35 years, Silicon Valley Bank has helped innovators, enterprises and their investors move bold ideas forward, fast. Today, we provide a wide range of banking and financing services to businesses of all sizes in innovation centres around the world. SVB Financial Group, the parent company of Silicon Valley Bank, has had a presence in the UK since 2004. The bank is committed to supporting disruptive technology and life science businesses within the UK's vibrant innovation sector, including Made.com, Hostmaker, The Hut Group and Trustpilot. svb.com/uk

Silicon Valley Bank is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

MSCLIFETITLLIIT

(END) Dow Jones Newswires

October 01, 2018 05:00 ET (09:00 GMT)