- Additional EUR 2.5 million bridge facility is provided by the senior secured lenders to extend monetization process to early June.
Liege, Belgium, 29 May 2024 – 08:00 CEST – Mithra (Euronext Brussels: MITRA), a company dedicated to women’s health, today announces that its senior secured lenders have agreed to provide an additional EUR 2.5 million in bridge financing, supplementing the previously provided EUR 18.5 million, to support the ongoing monetization process.
This development signifies a step forward towards the sale of Mithra’s estetrol-related assets (i.e., Estetra SRL, Neuralis, and parts of Mithra R&D) in negotiations with the prospective buyer Gedeon Richter. Mithra emphasizes that the current aggregate offer, including offers received for assets outside the contemplated perimeter of Gedeon Richter’s offer (i.e., Mithra CDMO, Novalon SA, and Mithra parent co.), remains insufficient to ensure full repayment of all creditors and, consequently, does not create value for shareholders. Mithra remains dedicated to negotiating with all prospective buyers to maximize value, acting in the best interest of all stakeholders.
The newly announced EUR 2.5 million in funding from the senior secured lenders extends the cash runway through early June 2024, providing necessary time to finalize negotiations within the monetization process.
Background Information:
On 5 March 2024, Mithra announced the launch of a comprehensive monetization process, exploring potential sales of selected assets, notably Estetra SRL, and potentially the entire business. Additionally, Mithra announced the entry into a secured bridge loan facility (“the Facility”) for an amount of up to EUR 13.5 million to be drawn in multiple tranches upon the satisfaction of certain milestones, as well as an uncommitted EUR 5 million “accordion” facility (which could be used once the committed amount has been fully drawn and only if the lenders consent). The lenders under the Facility consist of funds managed by Highbridge Capital Management, LLC and funds managed by Whitebox Advisors, LLC.
The monetization process for Mithra’s CDMO and Novalon SA assets are proceeding under court protection measures from the Liege Company Courts. The Mithra CDMO asset in Flemalle, Belgium was granted “Transfer under Judicial Supervision” with court-designated trustees to oversee negotiations with potential bidders and select the best offer while safeguarding the interests of the company, its creditors, and its employees. The Judicial reorganization proceedings to restructure the debt of Novalon SA, Mithra’s complex therapeutics business, involves reaching an amicable agreement with some creditors and implementing a court-sanctioned debt-restructuring plan therewith. The protection measures are expected to remain in effect until 19 June 2024.