Business
Completion of Loan Agreement & Partial Conversion
Completion of Loan Agreement & Partial Conversion.
About this update from Shield Therapeutics Plc
[{"type":"text","content":"\n \n \n Shield Therapeutics plc\n \n (\"Shield\" or the \"Company\" or the \"Group\")\n \n \n \n \n \n Completion of Loan Agreement and Partial Conversion\n \n \n \n \n \n \n \n London, UK, 1 August 2022:\n \n Shield Therapeutics plc (LSE: STX), a commercial stage pharmaceutical company focused on the commercialization of Accrufer®/Feraccru® (ferric maltol), a novel, oral iron therapy differentiated from other conventional irons by its efficacy, well-tolerated formulation, and broad indication, announces that following the Company's general meeting held on 27 July 2022, the Company has concluded the formal loan documentation (the \"Shareholder Loan Agreement\") in relation to the US$10 million loan (the \"Shareholder Loan\") agreed between the Company and AOP Health International Management (\"AOP\"), an existing shareholder of the Company, as first announced by the Company on 30 June 2022, with further details set out in the circular sent to Shield's shareholders on 8 July 2022.\n \n \n Details of the Shareholder Loan\n \n Pursuant to the Shareholder Loan Agreement, AOP has agreed to lend the Company US$10 million. The Loan will be drawn down in a single tranche on 1 August 2022 and it is secured over Shield's US intellectual property rights associated with Accrufer®. The interest rate benchmark will now be derived from the Secured Overnight Financing Rate (\"SOFR\") rather than USD LIBOR as was previously announced on 30 June 2022 because LIBOR is being wound down and USD 12-month LIBOR will cease to be published after June 2023. Interest under the Shareholder Loan will therefore be payable at a rate of 9.1% above SOFR rather than 7.0% above USD 12-month LIBOR as previously announced. Accordingly, the effective rate of interest payable under the Shareholder Loan is approximately the same as had previously been communicated, based on published SOFR and LIBOR as at the date of this announcement.\n \n The Shareholder Loan will be repayable in full in cash upon the earliest to occur of:\n \n I. Shield completing a debt financing transaction or equity fundraise (or a combination of both) in an amount of at least US$30 million (if not converted as part of such transaction); or\n \n \n II. 31 December 2023.\n \n Shield is entitled to repay the loan in whole or in part (in multiple...