SynAct Pharma AB, a clinical-stage biotechnology company focused on treating inflammation through resolution, has secured a SEK 30 million credit facility from Hunter Capital, one of its largest shareholders. Combined with existing funds of SEK 51 million as of March 2025, this financing extends the company's operational runway to mid-2026, providing crucial support for advancing its rheumatoid arthritis program.
Strategic Positioning for Partnerships
The credit facility comes at a pivotal time for SynAct, following completion of its phase 2b ADVANCE study for resomelagon (AP1189). The extended financial runway will enable continued business development activities focused on securing partnerships for the company's development programs while maintaining ongoing regulatory interactions with both the European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA).
"I am very satisfied with the support and confidence that we have received from our major shareholder, Hunter Capital," said Jeppe Øvlesen, CEO of SynAct Pharma. "SynAct has a remarkable drug candidate with resomelagon (AP1189). The data gained so far point to a major change to how we help the body resolve excessive inflammation in autoimmune diseases as rheumatoid arthritis and in severe viral infections, conditions where inflammation can overwhelm the immune system's ability to counter the inflammation that can lead to suffering, tissue damage and loss of function."
Flexible Financing Structure
The credit facility is structured as a secondary financing option, with SynAct prioritizing other funding sources such as stock market financing or partnership agreements. The company can utilize the facility in full or in parts up to the total SEK 30 million amount, with credit withdrawals available through December 31, 2026.
Key terms include a 5.0 percent arrangement fee regardless of utilization and a 6.0 percent annual interest rate on any withdrawals. Notably, SynAct has not pledged any assets, including intellectual property, as collateral for the facility. The company retains the right to repay withdrawals early without redemption fees.
Conversion Rights and Governance
Under specific conditions, Hunter Capital has the right to convert outstanding amounts to ordinary shares once at least 50 percent of the facility has been drawn. This conversion requires shareholder approval and compliance with market regulations, with the subscription price based on the volume-weighted average price during the 15 trading days preceding the conversion decision.
"As one of SynAct Pharma's major shareholders, we are pleased to be able to deepen our partnership with the company and offer a financing solution on very attractive terms," said Oliver Aleksov, Chairman of the Board of Hunter Capital. "Through the financing solution, SynAct Pharma gains a stronger financial stability and will at the same time be in a good position for dialogues about strategic partnerships with major pharmaceutical players."
Novel Approach to Inflammation Resolution
Resomelagon represents a differentiated approach to treating autoimmune diseases by focusing on inflammation resolution rather than suppression. This mechanism addresses conditions where excessive inflammation overwhelms the immune system's natural ability to resolve inflammatory responses, potentially offering advantages in rheumatoid arthritis and severe viral infections where traditional anti-inflammatory approaches may fall short.
The Board of Directors has assessed the credit facility terms as market-based and in the best interests of both the company and its shareholders, positioning SynAct for continued development of its inflammation resolution platform while maintaining strategic flexibility for future partnerships.
