Mesoblast (ASX:MSB) signed a convertible note subscription agreement with its largest shareholder, Gregory George, to raise up to $50 million for the commercialization of Ryoncil, according to a Monday filing with the Australian bourse.
The funding option is contingent on the approval of the US Food and Drug Administration of Mesoblast's Ryoncil, a product candidate for use as a treatment for children with steroid-refractory acute graft versus host disease.
Mesoblast expects a decision on or before the FDA's Prescription Drug User Fee Act goal date of Jan. 7, 2025, the filing said.
The notes will be issued in tranches of $10 million following an FDA approval and bear a coupon of 5% per annum. The conversion price will be $9.06 per American depository receipt, equivalent to AU$1.32 per ASX-listed share, representing a 25% premium to Mesoblast's five-day volume-weighted average share price, the filing stated. The notes will mature four years after the first issuance.
Mesoblast's shares were up 3% in recent trade.
Price (AUD): $1.16, Change: $+0.030, Percent Change: +2.67%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.