- Financial results show Mithra has solid financial foundation and multiple options to finance
- Shareholder meetings called to consider routine matters of business
Liege, Belgium, 05 October 2023 – 7:00 CEST –Mithra (Euronext Brussels: MITRA), a company dedicated to Women’s Health, today provides an update in the context of recent market announcements and developments.
Recent developments in the Belgian biotech industry have caused some concerns among investors about Mithra’s financials, as well as the announcement on September 29th on the upcoming special and extraordinary securities holders’ meetings to be held on October 30th.
These special and extraordinary securities holders’ meetings have been called to consider routine matters of business, in particular linked to the previously announced financial arrangements with Armistice Capital and Highbridge Capital Management and Whitebox Advisors. The agenda items, which are publicly available, show that there are no drastic financing issues to address, and all proposals relate to existing, agreed upon measures to finance the company.
Mithra is obliged to disclose its finances publicly and has done so on the 26th of September, revealing it has a strong financial baseline. As published in its 2023 Half Year Results Report, Mithra’s auditors raised no new issues that would prevent the company from continuing its business operations as a “going concern.”
Dr. David Horn Solomon, Chief Executive Officer of Mithra, commented: “Our latest financial results, published just last month, show that Mithra has a solid financial foundation, in that we continue to have multiple options to finance the company. We have made progress over the last months, demonstrating those strong underlying fundamentals, and we are working hard to further deliver on our strategy and unlock the value in the business. In particular, we raised EUR 20 million in a successful equity financing, with potential for up to an additional EUR 45 million in equity, which is an important demonstration of our ability to raise finance during turbulent market conditions.”
Other important steps, which have generated or are expected to generate revenue, include:
- Canadian licensing deal for DONESTA®, worth up to EUR 17.05 million in licensing and milestone payments plus tiered double-digit royalties
- EUR 1.25 million milestone payment from Fuji Pharma on ESTELLE®
- Generated about EUR 10 million in cash for operations from our sale of about half of our shares of Mayne Pharma
- Secured access to EUR 12.5 million in financing from Highbridge and Whitebox under a loan facility
- ESTELLE® U.S. product sales volumes by partner Mayne Pharma increased by 80% in H1 2023, compared to H2 2022. The company’s higher net loss for H1 2023 was mainly due to the reimbursement of certain loan tranches.
- Actively engaged in securing a U.S. distribution partner for DONESTA®
- Actively evaluating the best strategic alternatives for two non-core businesses: the complex therapeutics business Novalon and the contract development and manufacturing organization (CDMO)