23 December 2013
TiGenix secures EUR 10 million in financing from Kreos Capital Company ends year in strong position to fully leverage leading cell therapy platform
Leuven (BELGIUM) – December 23, 2013 – TiGenix (Euronext Brussels: TIG) announced today that it has signed a structured debt financing agreement of up to EUR 10 million with Kreos Capital (Kreos), Europe’s largest and leading provider of growth debt to high-growth companies.
The funds will supplement the EUR 12 million in equity financing TiGenix recently secured from Gri-Cel SA, and will be used for general growth purposes as TiGenix advances the development of its expanding pipeline of cell therapy products.
“In combination with the recent strategic investment by Gri-Cel/Grifols this funding significantly strengthens our financial position and allows us to aggressively expand our pipeline of proprietary cell therapy products,” said Eduardo Bravo, CEO of TiGenix. “Importantly, it enables us to independently finalize the Phase III trial with our lead product Cx601 and file for European registration, and thus capture significantly more value from a potential partnering agreement. The addition of debt financing represents an attractive and, except for a limited warrant component, non-dilutive complement to our existing capital structure. We are delighted to finish the year with a solid balance sheet and additional resources to optimally leverage our world-leading cell therapy technology platform as we move forward.”
“Kreos is very pleased to be able to support TiGenix as it further builds its strong cell therapy portfolio,” said Maurizio PetitBon, General Partner of Kreos. “TiGenix constitutes one of our first investments in the public market, and we have been very impressed by the quality of the team, the technology platform and the underlying business.”
About the loan agreement
Draw down: three tranches at the Company’s discretion: EUR 5 million in early February 2014; EUR 2.5 million by end of May, 2014; EUR 2.5 million by end of September, 2014
Term: four years
Amortization: starts at first anniversary
Interest: 12.5% fixed annual interest rate
Structure: security over certain assets; no financial covenants
Warrants: approximately 2 million warrants to be granted to Kreos, subject to shareholder approval; exercise price to equal 30-day average closing price of TiGenix share at date of issue of warrants; if shareholders do not approve the issue of warrants, Kreos is entitled to a payment of EUR 890,000 over 3 years
TiGenix NV (NYSE Euronext Brussels: TIG) is a leading European cell therapy company with a marketed cell therapy product for cartilage repair, ChondroCelect®, and a strong pipeline with clinical stage allogeneic adult stem cell programs for the treatment of autoimmune and inflammatory diseases. TiGenix is based out of Leuven (Belgium) and has operations in Madrid (Spain), and Sittard-Geleen (the Netherlands). For more information please visit www.tigenix.com.
Kreos Capital is Europe’s largest and leading provider of growth debt to high-growth companies with revenues up to €150 million. Since 1998, as the pioneer growth debt provider across the UK, Western Europe, Scandinavia and Israel, Kreos has completed over 300 transactions and committed over €1 billion in 14 different countries. Kreos has a proven track record of adding value to portfolio companies and helping them to grow with additional capital and flexibility throughout their business cycle whilst working closely with both the portfolio company management team and their equity sponsors. www.kreoscapital.com
This press release is for information purposes only and is not intended to constitute, and should not be construed as, an offer to sell or a solicitation of any offer to buy shares in the share capital of TiGenix NV (the “Company”). This announcement has been issued by and is the sole responsibility of the Company.
Certain statements in this press release, as well as oral statements that may be made by the Company or by officers, directors or employees acting on their behalf relating to the subject matter hereof, may be considered “forward-looking”. Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. Forward-looking statements may be identified by references to strategy, plans, objectives, goals, future events or intentions. Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and generally beyond the control of the Company. Forward looking statements may and often do differ materially from actual results. The Company therefore cannot provide any assurance that such forwardlooking statements will materialize. Additional information concerning risks and uncertainties affecting the business and other factors that could cause actual results to differ materially from any forward-looking statement is contained in the Company’s Annual Report. Forward-looking statements speak only as of the date they are made. The Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement whether as a result of new information, future developments or otherwise.
For more information:
Officer Chief Financial Officer
Director Investor & Media Relations
+32 16 39 60 97