Hemogenyx Pharmaceuticals (LSE:HEMO) has secured £285,000 in funding through the issuance of convertible loan notes (CLNs) to support its upcoming clinical trial of HG-CT-1, a novel CAR-T cell therapy targeting relapsed or refractory acute myeloid leukemia (AML). The funding initiative comes at a crucial time as the company prepares to treat its first patient in the trial.
Strategic Funding Structure
The convertible loan notes, issued at a fixed conversion price of £3.00 per share, were primarily subscribed by existing shareholders, demonstrating continued investor confidence in the company's therapeutic approach. The non-interest-bearing CLNs will automatically convert following an adjustment in the company's headroom restrictions under the FCA's Prospectus Rules, expected around March 8, 2025.
As part of the funding package, subscribers will receive additional benefits in the form of one-for-one warrants. These warrants will be exercisable at £4.00 per share for each share received upon the CLN conversion date, providing potential for future capital appreciation.
Clinical Development Progress
The timing of this funding coincides with a significant milestone in Hemogenyx's development program. The company is advancing its lead product, HG-CT-1, toward first patient treatment in its clinical trial program. This CAR-T cell therapy represents a potential new treatment option for AML patients who have failed to respond to or relapsed after conventional therapies.
Dr. Vladislav Sandler, CEO of Hemogenyx Pharmaceuticals, emphasized the significance of this funding: "We are very pleased with the progress of the clinical trials for our lead product, HG-CT-1. The strong support from our subscribing noteholders, predominantly existing shareholders, reflects their confidence in our strategy and long-term vision."
Financial Implications
The successful placement of the convertible notes strengthens Hemogenyx's financial position at a critical juncture. The company's board views this funding as strategically important, noting that the commencement of clinical trials has enhanced the company's position and opened new opportunities for securing additional funding to complete clinical development.
The funding structure has been designed to minimize immediate dilution while providing the company with necessary capital to advance its clinical program. Management believes this approach aligns with shareholder interests by extending the company's financial runway while maintaining focus on clinical development milestones.
