Biotech company in the field of life-science

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Summary

The Company, founded in 1992, produces unique and patented drugs for cancer patients. Through related companies, owned by one holding company, also patient treatment services, as well as medicine transportation/distribution services are provided. Company is currently finalizing construction of a new laboratory that will be used for manufacturing of active substance of the Company’s drugs. The construction of laboratory has been financed with equity capital as well as loan from bank. Finalisation of the construction and reception of GMP (good manufacturing practice) certificate is expected in 4-months time or earlier. Due to delays and unexpected increases of costs in the construction process, the Company is seeking additional working capital bridge loan of EUR 204,000 for 4 months period. After this term, Company expects to receive next round of financing from bank. In case such financing would not be obtained from the bank, the loan would be extended for further 6 months term with monthly amortization schedule. During the initial 4 month term loan would carry 12.6% annual interest rate, which would increase to 15% if the loan is extended for the said 6 months. Loan would be provided to the holding company with personal warranty from the main shareholder as well as debt claim towards the Company in form of a cession agreement.

There is a number of factors that make investment in the Company an attractive opportunity and the main highlights are the following:

  • The treatment has been approved in clinical practice and Company's drugs are included in the list of state-funded medicines
  • Significant amount of the owners equity (EUR 2.0 million) with low amount of external borrowings at EUR 0.86 million (loan from bank);
  • Secured with cession agreement (and hence claims towards the holding company and the manufacturing company) as well as warranty of the owner;
  • Drug is registered in 4 countries with access to more than 40 million people.
ID 10911-2018
Industry Biotech
Location Latvia
Loan type Mixed
Term 4 + 6 months
Expected return 12.60% + 2.40%
Interest rate Monthly
Amortisation At the end of 4 months or monthly during last 6 months
Risk grade C (75 out of 100)
Personal warranty Owner
Collateral Cession agreement for debt claim
Capitalia's cofinancing 47000
Target amount 204000
Successfully funded