Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) said it had completed the formalities related to a US$10mln provided by shareholder AOP Health International Management.
AOP in turn has exercised its option to convert a portion of that debt into equity giving it just under 41.2mln shares. The stock was acquired at a 10% discount to the average closing price for the 10 days prior. On a diluted basis, that is an additional 16% stake AOP has in Shield.
The debt carries a coupon of 9.1 points above the Secured Overnight Financing Rate.
It will be repaid in full on completing a debt or equity fundraiser of US$30mln or more, or on December 31 next year (whichever is first).
AOP has the option to convert the debt into shares anytime at a 10% discount.
Shield is a commercial-phase drugs company whose lead product Accrufer/Feraccru is used to treat iron deficiency.
“Shield is very pleased and fortunate to be able to count on the continued support by an established and international renown pharmaceutical company like AOP, which has been one of our cornerstone investors from the inception of the business,” said chief executive Greg Madison.