Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF) has wiped out its shareholder debt and strengthened its finances after investors exercised £55 million worth of warrants and agreed to a fresh £50 million loan facility running through to 2030.
The AIM-listed biotechnology company, which develops allergy vaccines and treatments, said on Wednesday that its long-term backers SkyGem Acquisition and Southern Fox Investments had exercised 1.38 billion warrants issued under a 2023 funding agreement.
The move generated £55 million in proceeds, which were used to repay all outstanding principal and interest under the previous shareholder loan.
At the same time, the two investors have agreed to make available a new unsecured credit line of up to £50 million.
The uncommitted facility, which carries annual interest of 12%, can be drawn until mid-2030, giving the company greater financial flexibility to fund its research pipeline.
Chief executive Manuel Llobet said: “This transaction leaves Allergy Therapeutics with a strengthened balance sheet and renewed financial flexibility as we enter an important period for the company.
"With the continued backing of our core investors, we can focus on near-term milestones such as the upcoming regulatory decision on Grass MATA MPL in Germany and ongoing progress with our peanut allergy vaccine programme.”
The company also issued a small number of additional warrants to Hayfin Capital Management under existing anti-dilution rights linked to a separate financing agreement signed last year.
Allergy Therapeutics, based in West Sussex, said the restructuring demonstrates “continued support from the company’s long-term shareholders” and positions it well as it advances late-stage allergy immunotherapy programmes across Europe and the United States.