Heidelberg, October 19, 2009 – SYGNIS Pharma AG (Frankfurt: LIO; ISIN DE0005043509; Prime Standard), a clinical stage biotech company developing innovative CNS treatments, today announced that it has entered into a 3 year standby equity distribution agreement (SEDA) with YA Global Master SPV LTD (YA Global) a fund managed by Yorkville Advisors, LLC located in New Jersey USA.
The agreement provides SYGNIS with the option to request YA Global, during the next 36 months, to subscribe for newly issued SYGNIS shares, from the company’s authorized capital, in tranches of up to € 500,000 each. The subscription price of the new shares will be determined at 95% of the lowest volume-weighted average price of one of the five trading days following the date of the relevant draw down notice.
The total value of this equity facility aggregates to up to € 10 million, provided that the aggregate number of shares issued to YA Global shall not exceed 9,9% of SYGNIS’ share capital. Yorkville can either accumulate these shares or place them in the market. However, Yorkville is committed not to short sell or enter into any hedging transactions related to particular company stock.
Peter Willinger, CFO of SYGNIS Pharma AG noted, “This agreement is very well suited to provide SYGNIS with financial flexibility, particularly in light of the prevailing market conditions, with dilution under our control. It gives us access, if we require it, to significant liquidity in exchange for stock placing the company in a more comfortable position from which to develop our pipeline.”
Dr. Michael J. Nowak, Head of the Healthcare Group and a Managing Director at Yorkville Advisors, LLC, the investment manager to a family of Funds based in New Jersey, led the investment into SYGNIS Pharma AG. Dr. Nowak, stated: “Yorkville provides innovative financing tools for public technology companies. Given the large unmet medical need, the market potential and promising novel approach of SYGNIS to CNS therapeutics, we’re especially delighted to be investing in this leading German CNS player.”
About SYGNIS Pharma
SYGNIS Pharma AG, headquartered in Heidelberg, is a biopharmaceutical company listed on the Prime Standard of the German stock exchange. The Company is focused on the research, development and marketing of innovative therapies for the treatment of disorders of the Central Nervous System. These include stroke and various forms of dementia. These disorders are characterized by an acute or gradual loss of nerve cells, which for the patients always means a decline of functional abilities. Although there is great medical demand, there are currently no or only inadequate treatment options available.
One of the central elements in the Company’s value-creation chain is the continued development of the existing product pipeline. This is achieved by testing the Company’s proprietary compounds, which are already under development in a number of further CNS indications. Within specific R&D programs at SYGNIS, new pre-clinical drug candidates are identified and evaluated as well as early-stage projects are initiated for the purpose of partnering.
About Yorkville
Founded in January 2001, Yorkville specialises in providing flexible and cost-effective debt and equity financing to publicly listed companies worldwide. Yorkville has a broad investment mandate and the flexibility to invest across many geographies as well as sectors, including natural resources, technology media & telecommunication (TMT), healthcare, industrials and shipping.
Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; London and Hong Kong. It also has joint venture agreements in Italy, Greece and Israel.
