(Sharecast News) - Faron Pharmaceuticals announced on Tuesday that it has extended its agreement with lender IPF to ensure continued financial support as it progressed towards securing longer-term funding.
The AIM-traded firm said the extension would enable it to maintain its focus on preparations for securing future funding.
Key terms of the extension included a minimum cash covenant set at €6m until 20 May, subject to ongoing clinical success with the 'BEXMAB' trial.
Following that, the cash covenant would decrease to €5.5m until 12 June, and then to €4.5m until a minimum equity raise of €10m had been achieved.
As part of the agreement, IPF would receive a waiver fee and additional new warrants totaling €0.5m euros, with a strike price based on market conditions.
The extension would be valid until 27 June, contingent on meeting the specified terms and securing subscriptions or guarantees for a public offer amounting to €10m by 11 June.
Faron said it had implemented significant cost-saving measures in recent months, and expected to maintain its cash runway into the third quarter of 2024.
At 1613 BST, shares in Faron Pharmaceuticals were up 4.04% at 145.65p.
Reporting by Josh White for Sharecast.com.
Faron Pharmaceuticals (FARN)