BioSenic Agrees to EUR 2.1M Convertible Bond Deal

Mont-Saint-Guibert, Belgium, June 21, 2024 – BioSenic, a company focused on advanced treatments for autoimmune and inflammatory diseases, has entered into a new subscription agreement for convertible bonds worth up to EUR 2.1 million. This arrangement, managed by ABO Securities through Global Tech Opportunities 15 (GTO 15), marks a significant financial milestone for BioSenic.

Under the terms of the agreement, GTO 15 has pledged to subscribe up to EUR 2.1 million in convertible bonds, issued in a maximum of seven tranches. The first tranche, valued at EUR 300,000, will be subscribed and paid for by GTO 15 in the coming days, with the second tranche expected on July 10, 2024. BioSenic can request the remaining five tranches, each also EUR 300,000, over an 18-month period following the agreement's signing, contingent on certain conditions, including listing new shares resulting from the bond conversions and maintaining specific trading value and additional funding requirements.

These convertible bonds are unsecured, subordinated, and registered, each valued at EUR 10,000. They have a five-year maturity period, extendable by a year if necessary to prevent GTO 15 from exceeding a 24.9% voting share in BioSenic. The bonds are convertible into BioSenic's ordinary shares, with the conversion price set at 95% of the lowest daily Volume-Weighted Average Price (VWAP) over a specified period.

The funding will primarily support the clinical development of BioSenic’s leading asset, the ATO product, targeting chronic graft-versus-host disease (cGvHD). It will also cover general business and research expenses and other critical corporate activities. Prof. François Rieger, CEO and Chairman of BioSenic, emphasized that this agreement would significantly advance the company's efforts toward filing an Investigational New Drug (IND) application with the FDA and other regulatory authorities for their Phase 3 international program. This trial aims to confirm Phase 2 results for the treatment of cGvHD with their oral drug, targeting patient enrollment in Q1 2025.

BioSenic, based in the Louvain-la-Neuve Science Park in Mont-Saint-Guibert, Belgium, is a prominent biotech entity developing clinical assets from its Medsenic ATO platform. Key indications for their autoimmune platform include graft-versus-host disease (GvHD), systemic lupus erythematosus (SLE), and systemic sclerosis (SSc). Post its merger in October 2022, BioSenic has integrated the strategic advantages of Medsenic and Bone Therapeutics, enhancing their ability to develop new anti-inflammatory and autoimmune formulations utilizing the immunomodulatory properties of ATO and oral ATO (OATO).

The ATO platform plays a crucial role in onco-immunology, particularly for treating cGvHD, a common and severe complication post-allogeneic hematopoietic stem cell transplantation. Medsenic’s phase 2 trial with Arscimed®, an intravenous ATO formulation, has gained orphan drug status from the FDA and EMA, paving the way for a phase 3 confirmatory study with the new OATO formulation. Additionally, the platform shows promise for treating systemic lupus erythematosus and systemic sclerosis, with positive preclinical studies supporting a phase 2 clinical protocol.

BioSenic continues to focus on rapidly developing its autoimmune platform while exploring new applications for its cell therapy origins from Bone Therapeutics. This includes using Mesenchymal Stromal Cells (MSCs) for isolating biologically active subcellular elements for organ repair, aiming to establish new patentable approaches in cell therapy.

In summary, BioSenic's new funding agreement sets the stage for significant advancements in its clinical programs, particularly for cGvHD, while bolstering its financial and operational capabilities to pursue innovative treatments in autoimmune and inflammatory diseases.

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