ValiRx PLC Loan Note Conversion and Issue of Equity (0044Z)

TIDMVAL

RNS Number : 0044Z

ValiRx PLC

11 December 2017

ValiRx Plc

("ValiRx" or "the Company" or "the Group")

Loan Note Conversion and Issue of Equity

London, UK., 11 December 2017: ValiRx Plc (AIM: VAL), a life science company, which focuses on clinical stage cancer therapeutic development, taking proprietary & novel technology for precision medicines towards commercialisation and partnering, announces the conversion of the second tranche of the YA II CD, Ltd. ("YA II") Convertible Loan Facility ("CLN").

YA II has elected to convert US$696,202.90 of its CLN (plus accrued interest of US$10,530.52) from Tranche 2 into 47,765,035 ordinary shares at an agreed conversion price of 1.25p per share, subject to the passing of the general meeting of the Resolutions to be proposed to the shareholders of the Company on 21 December 2017. The conversion price of 1.25p has been agreed between the YA II and the Company and supersedes the conversion formulae stated in the announcement dated 2 September 2016.

US$520,000 (plus interest) on Tranche 2 of the CLN remains outstanding.

The Table below sets out a summary (excluding accrued interest) of the facility following the conversions and repayment detailed above:-

 
                      Tranche          Tranche          Tranche        Total 
                       1                2                3 
-------------------  ---------------  ---------------  -------------  --------------- 
 Par value of         US$1,250,000     US$1,250,000     US$1,250,000   US$3,750,000 
  tranche 
-------------------  ---------------  ---------------  -------------  --------------- 
 Amount drawn         (US$1,250,000)   (US$1,250,000)   nil*           (US$2,500,000) 
  down 
-------------------  ---------------  ---------------  -------------  --------------- 
 Balance of tranche   nil              nil              nil*           nil 
  available for 
  drawdown 
-------------------  ---------------  ---------------  -------------  --------------- 
 
 Total conversion     US$1,250,00      US$740,529       nil*           US$1,990,529 
  / repayment 
  of tranche into 
  ordinary shares/ 
  for cash 
-------------------  ---------------  ---------------  -------------  --------------- 
 Balance of tranche   nil              US$520,000       nil*           US$520,000 
  outstanding 
-------------------  ---------------  ---------------  -------------  --------------- 
 

*No further balance available as the Company has elected to close tranche 3 of the facility.

Each tranche has a maturity date of 12 months from the date of drawdown. The Convertible Loan Notes bear an interest rate of 9 per cent. per annum.

Application for the 47,765,035 ordinary shares will be made to the London Stock Exchange and trading in these shares is expected to commence on or around 29 December 2017.

The existing issued share capital of the Company comprises of 216,405,413 ordinary shares, pre-tranche 1 and 2 shares to be admitted to AIM as announced on 30 November 2017. Following the issue of equity above the Company's issued share capital will comprise of 344,170,448 following the admission of shares with the first and second tranche and the Yorkville conversion.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

*** ENDS ***

For more information, please contact:

 
 ValiRx plc                                 Tel: +44 (0) 20 
                                             3008 4416 
                                             www.valirx.com 
 Dr Satu Vainikka, Chief Executive          Tel: +44 (0) 20 
                                             3008 4416 
 Tarquin Edwards, Head of Communications.   Tel: [phone] 
                                             458 364 
                                             [e-mail] 
 
 Cairn Financial Advisers LLP               Tel: +44 (0) 20 
  (Nominated Adviser)                        7213 0880 
  Liam Murray/Jo Turner/Richard 
  Nash 
 
 Beaufort Securities Limited                Tel: +44 (0) 207 
  (Broker)                                   382 8300 
  Jon Belliss 
 

Notes for Editors

About ValiRx

ValiRx is a biotechnology oncology focused company specialising in developing novel treatments for cancer and associated biomarkers. It aims to make a significant contribution in "precision" medicine and science, namely to engineer a breakthrough into human health and well-being, through the early detection of cancer and its therapeutic intervention.

The Company's business model focuses on out-licensing therapeutic candidates early in the development process. By aiming for early-stage value creation, the company reduces risk considerably while increasing the potential for realising value. The group is already in licensing discussions with major players in the oncology field.

ValiRx's two classes of drugs in development, which each have the potential for meeting hitherto unmet medical needs by existing methods, have worldwide patent filings and agreed commercial rights. They originate or derive from Word class institutions, such as Cancer Research UK and Imperial College.

Until recently, cancer treatments relied on non-specific agents, such as chemotherapy. With the development of target-based agents, primed to attack cancer cells only, less toxic and more effective treatments are now possible. New drugs in this group-such as those in ValiRx's pipeline-promise to greatly improve outcomes for cancer patients.

The Company listed on the AIM Market of the London Stock Exchange in October 2006 and trades under the ticker symbol: VAL.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 11, 2017 10:48 ET (15:48 GMT)