The payment is made by the company’s co-development partner in Locteron, Biolex Therapeutics. The additional bridge financing will enable OctoPlus to secure one of the longer term financing options currently under negotiation.
The payment by Biolex will expand OctoPlus’s bridge financing to E6 million and carries the same terms including a 15% annual interest. The other participants in the bridge financing are OctoPlus’ major shareholders Life Sciences Partners and SR One.
The bridge financing may be converted by each lender for a participation in a potential private offering, or alternatively, in ordinary shares at a certain discount, which will have a dilutive effect.