Newron secures CHF30m in equity funding agreement

Source: Healthcare Digital

Date :03/12/2008 11:28:41

R&D company Newron Pharmaceuticals SpA announced December 3, it has entered into an equity funding agreement with YA Global Investments to raise up to 30 million Swiss francs.

The agreement will support the continued longer term development of Newron’s product candidates.

Under the terms of the agreement, Newron can ask YA Global to subscribe to newly issued Newron shares in regular tranches of up to 400,000 Swiss francs as well as advance tranches of up to two million Swiss francs.

YA Global can either accumulate these shares up to a maximum holding in Newron of 9.99 percent or place them in the market, Newron said in a statement.

“Management believes that this instrument provides us with sensible financial flexibility in the current market environment,” Newron’s Chief Executive Officer Luca Benatti said.