26 Jun 2018 07:00
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SalvaRx Group plc
("SalvaRx" or the "Company")
Related Party Loan of US$1 million
SalvaRx (LON: SALV), a biotechnology company focused on immunotherapy for cancer, announces an unsecured US$1 million loan (the "Loan").
Jim Mellon and Greg Bailey, who are both directors and substantial shareholders of the Company, have each agreed to loan the Company US$0.5 million ("the Lenders"). Jim Mellon's loan will be made via Galloway Limited, a company owned by a trust of which he is a life tenant.
The Loan is repayable within 12 months and attracts interest at 7% per annum. The Company has the right to repay the Loan at any time. If any portion of the Loan is outstanding after 12 months, the Lenders will charge interest of 18% per annum on the outstanding amount. This funding will be used to finance the Company's various drug development programmes and its working capital requirements.
Ian Walters, CEO of SalvaRx, said "The Company has built its drug pipeline into an interest in ten programmes, one of which is in clinical testing. With this further support from Jim Mellon and Greg Bailey, we are able to continue to progress the various programmes as we investigate further funding and development opportunities."
Related Party Transactions
The subscriptions for the Loan by Mr Mellon and Dr Bailey constitute related party transactions under Rule 13 of the AIM Rules for Companies. The independent directors, being Ian Walters, Kam Shah, Richard Armstrong and Colin Weinberg, consider, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.
-Ends-
SalvaRx Group plc |
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Ian Walters (Chief Executive) | Tel: +1 203 441 5451 |
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Northland Capital Partners Limited Nominated Adviser and Broker | Tel: +44 (0) 20 3861 6625
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Matthew Johnson / Edward Hutton (Corporate Finance) | |
John Howes (Corporate Broking) |
Peterhouse Corporate Finance Limited Joint Broker Lucy Williams / Duncan Vasey | Tel: +44 (0) 20 7469 0932 |
For more information please visit: www.salvarx.io