Oxford, UK – 19 November 2013: Oxford BioMedica (“Oxford BioMedica” or “the Company”) (LSE: OXB), the leading gene-based biopharmaceutical company, today announces that it has signed a £5 million secured loan facility agreement with its largest shareholder, the Vulpes Life Sciences Fund (“Vulpes”). The loan facility, which constitutes a related party transaction, is conditional upon shareholder approval pursuant to Listing Rule 11 of the Listing Rules of the UK Listing Authority. A circular convening a general meeting of shareholders will be published in due course.
If approved by shareholders, Oxford BioMedica may draw down the loan in tranches of £1 million or more, as necessary, at any time from 1 January 2014 up until 10 business days before the maturity of the loan on 31 December 2014. Borrowings under the loan facility will be used for general working capital purposes. The loan facility is secured against certain intellectual property owned by the Company.
John Dawson, Chief Executive Officer of Oxford BioMedica, said: “As we have announced in our interim management statement today, operationally Oxford BioMedica is in a very strong position. We have tight fiscal controls in place and a £5 million loan from Vulpes will give us further flexibility to deliver on our operational objectives. With important RetinoStat® data expected in 2014, a revenue-generating manufacturing alliance and ample opportunity to capitalise on our capabilities in this area, as well as significant conditional project funding from the UK Government, we remain confident in our ability to bring further revenue and growth into the business.”
Martin Diggle, founder of Vulpes Investment Management and non-Executive Director of Oxford BioMedica, commented: “Having joined the Company’s Board of Directors in October 2012, I have been impressed with the operational achievements over the past 12 months. As with any biotechnology business, cash reserves are critical in order for Oxford BioMedica to maximise the potential of its state-of-the-art technology. We are pleased to be in a position to provide a non-dilutive funding solution during what we believe is a highly exciting period in the Company’s evolution, and we look forward to further progress ahead.”