Sensorion (Paris:ALSEN) (FR0012596468 – ALSEN), a clinical-stage biotechnology company which specializes in the development of novel therapies to restore, treat, and prevent within the field of hearing loss disorders, announced that Sonova Holding AG (headquartered in Switzerland), a provider of hearing solutions, will acquire a 3.7% ownership stake in Sensorion by way of subscription to a reserved share capital increase for total gross proceeds of €5 million (USD $6.08 million).
According to the announcement, Sensorion and Sonova plan a strategic collaboration in the field of innovative diagnostic and therapeutic solutions for certain types of hearing loss. To this effect, Sonova and Sensorion signed a letter of intent dated December 14, 2020, providing for an exclusive period of negotiation of a co-development agreement.
“We are pleased to welcome Sonova, a highly respected company with extensive expertise in hearing loss, as an investor in Sensorion,” said Nawal Ouzren, CEO of Sensorion.“We are excited to work with Sonova to accelerate the development of innovative solutions for various types of hearing loss.”
“Sensorion is conducting front-line research in the field of hearing loss with its programs, which have the potential to enhance existing approaches for the treatment of hearing loss in the future. We look forward to being involved in the further development of certain programs with Sensorion and to more deeply investigate and develop new diagnostic and therapeutic solutions,” said Arnd Kaldowski, CEO of Sonova.
Key characteristics of the share capital increase
Sensorion’s Board of Directors, using the delegation of powers granted by the 12th resolution of the extraordinary general meeting of shareholders of the Company held on May 20, 2020 (capital increase with cancellation of preferential subscription rights in favor of categories of persons with specific characteristics) and in accordance with article L. 225-138 et seq. of the French Commercial Code (code de commerce), has decided on December 14, 2020 to proceed with a capital increase of €294,117.60 euros (USD $357,674), to the benefit of Sonova Holding AG by the issuance of 2,941,176 new shares with a nominal value of €0.10 (USD $0.12) each (the “New Shares”) for a subscription price of €1.70 (USD $2.07) each (the “Capital Increase”).
The Company intends to use the net proceeds from the Capital Increase (as defined above) for possible studies under the co-development agreement, to develop its current gene therapy programs (OTOF and USHER), potentially broaden its gene therapy pipeline, support its pharmacology and clinical studies of SENS-401, and for working capital and general corporate purposes.
Following the issuance of the New Shares, the Company’s total share capital will be €7,974,022.80 (USD $9.69 million) equal to 79,740,228 shares, each with a par value of €0.10 (USD $0.12), it being provided that the shareholding of the Company is merely the same as the shareholding published in the half year report on October 21, 2020. Based on its forecasted expenses, the cash at June 30, 2020 and the net proceeds from the Capital Increase, the Company believes it will be able to fund its operations into H2 2022.
Sonova AG is also subject to a lock-up (subject to customary exceptions) until the later of: a) sixty (60) days as from the settlement of the transaction and b) the signature of a collaboration agreement between the Company and Sonova AG and the Investor under the letter of intent dated as of today, it being specified that, in any case, the lock up period will end no later than ninety (90) days as from the settlement of the transaction.
The settlement of the transaction will occur on or before December 24, 2020. The Capital Increase did not and will not require a prospectus to be submitted for approval to the French financial markets’ authority (the “AMF“).
Source: Sensorion, Sonova