- Increases Company's cash position and eliminates bank indebtedness -
LAVAL, QC, Nov. 26, 2014 /CNW/ - BELLUS Health Inc. (TSX: BLU) ("BELLUS Health" or the "Company"), a drug development company focused on rare diseases, today announced the sale of its ABCP Notes and settlement of its credit facilities.
The Company sold all of its asset-backed commercial paper notes ("ABCP Notes") for a total consideration of $5.3 million and used the proceeds thereof to settle its credit facilities, which were scheduled to mature in April 2016. Net cash generated from these transactions amounted to $150,000.
Early settlement of its credit facilities will enable the Company to save approximately $150,000 in future interest payments, and fully eliminates its bank indebtedness. The sale of ABCP Notes also eliminates the market risk associated with these assets.
"These transactions simplify the Company's balance sheet and will also enable the Company to add approximately $300,000 to its cash runway" said Roberto Bellini, President and Chief Executive Officer of BELLUS Health.
The Company's cash position, which amounted to $12.7 million as at September 30, 2014, should enable the Company to finance its operations beyond the end of the KIACTA™ Phase III Confirmatory Study, expected to conclude in 2016.
About BELLUS Health (www.bellushealth.com)
BELLUS Health is a drug development company focused on rare diseases. It has a portfolio of rare disease assets including KIACTA™ in Phase III for AA amyloidosis, KIACTA™ for sarcoidosis, clinical stage ShigamabTM for sHUS and a research-stage project for AL amyloidosis. The lead program KIACTA™ is currently in a Phase III Confirmatory Study for the treatment of AA amyloidosis, an orphan indication resulting in renal dysfunction that often leads to dialysis and death. KIACTA™ is partnered with global private equity firm Auven Therapeutics.
Forward Looking Statements
Certain statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, may constitute forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond BELLUS Health Inc.'s control. Such risks include but are not limited to: the ability to obtain financing, the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which the BELLUS Health Inc. does business, stock market volatility, fluctuations in costs, changes to the competitive environment due to consolidation, achievement of forecasted burn rate, potential payments in relation to indemnity agreements, achievement of forecasted clinical trial milestones, and that actual results may vary once the final and quality-controlled verification of data and analyses has been completed. In addition, the length of the KIACTATM Phase III Confirmatory Study is dependent upon many factors, including patient drop-out rate and occurrence of clinical endpoint events, and the sharing of proceeds between Auven Therapeutics and BELLUS Health Inc. from potential future revenue of KIACTA™ is dependent upon a number of factors, including the quantum of proceeds. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These statements speak only as of the date made and BELLUS Health Inc. is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, unless required by applicable legislation or regulation. Please see BELLUS Health Inc.'s public fillings including the Annual Information Form for further risk factors that might affect BELLUS Health Inc. and its business.
SOURCE: BELLUS Health Inc.
For further information: Adam Peeler, TMX Equicom, 416-815-0700 ext. 225, [email protected]