Allena Pharmaceuticals Announces $ 25 Million Strategy
– Extends Allena’s treasury track until Q4 2021 –
– Debt can be converted into equity at a price of $ 4.10 per share –
NEWTON, Mass., Sept. 30, 2020 (GLOBE NEWSWIRE) – Allena Pharmaceuticals, Inc. (NASDAQ: ALNA), an advanced-stage biopharmaceutical company dedicated to the development and commercialization of world-leading oral enzyme therapies to treat patients with the disorders rare and severe metabolic and kidney disease, today announced that it has entered into a $ 25 million convertible debt financing agreement with Pontifax Medison Finance, the dedicated healthcare venture capital and debt fund of the Pontifax Funds for life sciences.
“We are pleased to announce this funding agreement and delighted to partner with Pontifax, a leading life sciences investment firm. Throughout the due diligence process, the Pontifax team developed a deep understanding of our oral enzyme platform and an appreciation for the substantial potential of reloxaliase and ALLN-346, ”said Louis Brenner, MD, President and CEO of Allena Pharmaceuticals. “If fully utilized, this funding vehicle would extend Allena’s cash flow path through the fourth quarter of 2021, providing significant financial flexibility as we continue to advance our pipeline to deliver new therapies to patients. patients with rare and severe metabolic and renal diseases. “
“Allena has made impressive progress in developing reloxaliase as the first potential drug designed specifically for people living with enteric hyperoxaluria, a debilitating metabolic disease, which causes recurrent kidney stones and can progress to chronic kidney disease (CKD) and end-stage renal disease. We are very encouraged by the reloxaliase clinical trial data generated to date. We believe that URIROX-2 is a landmark trial for patients with enteric hyperoxaluria and is well positioned for success, ”said Momi Karako, Partner at Pontifax. “We look forward to partnering with Allena to support the company’s vision of providing reloxaliase, as well as ALLN-346 for the treatment of hyperuricemia in patients with gout and advanced CRF, and ultimately a broader pipeline of therapies that take advantage of its oral enzyme platform. Technology.”
Under the agreement with Pontifax, Allena will have access to up to $ 25 million of convertible debt financing in three tranches, which will mature over a period of four years and will have an interest-only period for both. first years. Upon closing of this transaction, the company has accessed the first tranche of $ 10 million and has the ability to draw down the second tranche of $ 5 million at any time during the next 12 months and the third tranche of $ 10 million. dollars by December 29, 2021., under certain conditions.
Pontifax may elect to convert the outstanding loan drawn under the first two tranches into Allena common shares at any time prior to repayment at a conversion price of $ 4.10 per share. Allena also has the option of converting the loan into shares of her ordinary shares, at the same conversion price, if the company’s share price reaches a predetermined threshold.
About Allena Pharmaceuticals
Allena Pharmaceuticals, Inc. is an advanced biopharmaceutical company dedicated to the development and commercialization of first-class oral enzyme therapies to treat patients with rare and severe metabolic and renal disorders. Allena’s flagship product candidate, reloxaliase, is currently being evaluated in a pivotal Phase 3 clinical program for the treatment of enteric hyperoxaluria, a metabolic disorder characterized by markedly elevated urinary oxalate levels and commonly associated with kidney stones, chronic kidney disease and other serious kidney problems. . Allena is also developing ALLN-346, currently under evaluation in a Phase 1 clinical trial, for the treatment of hyperuricaemia in gout and advanced chronic kidney disease.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding credit facility with Pontifax and the use of the proceeds thereof and statements regarding Allena’s financial condition and capital requirements. All forward-looking statements contained in this press release are based on management’s current expectations regarding future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those stated or implied by these forward-looking statements. statements. These risks and uncertainties include, but are not limited to: market conditions and others, timing of completion of Allena’s clinical trials on its product candidates, risks associated with obtaining, maintaining and protecting Intellectual property ; risks associated with Allena’s ability to enforce its patents against infringers and to defend its patent portfolio against third party challenges; the risk of competition from other companies developing products for similar uses; the risk associated with Allena’s financial condition and its need to obtain additional financing to support its business activities, including the future clinical development of reloxaliase and its ability to continue to operate; the risks associated with Allena’s dependence on third parties; and the risks associated with the COVID-19 coronavirus. For a discussion of other risks and uncertainties, and other important factors, each of which could cause Allena’s actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in Section 1A of Part I of the Allena Statements Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, as well as discussions of potential risks, uncertainties and other important factors in subsequent filings Allena with the Securities and Exchange Commission. All information in this press release is as of the date of publication, and Allena does not undertake to update this information, except as required by law.
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