Helix BioPharma Abandons GEM Financing Deal After Strategic Review
TL;DR
Helix BioPharma cancels GEM financing to protect shareholder value and seek better capital alignment for advancing its oncology pipeline.
Helix terminated the GEM equity facility after market evaluation, with shareholder approval obtained but binding agreements not executed due to strategic misalignment.
Helix prioritizes long-term value to sustain cancer research, ensuring resources advance treatments for hard-to-treat cancers and improve patient outcomes.
Helix BioPharma, an oncology innovator, abandons a major financing deal to explore better options for its clinical programs.
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Helix BioPharma Corp. has terminated its proposed equity draw-down subscription facility with GEM Global Yield LLC SCS and GEM Yield Bahamas Limited following a comprehensive strategic review. The clinical-stage oncology company determined that the financing arrangement no longer aligns with its capital strategy or commitment to maximizing long-term shareholder value, despite having secured shareholder approval for the deal at its annual general meeting on March 26, 2025.
The company had entered into a non-binding term sheet with GEM on October 15, 2024, and had disclosed the proposed subscription facility in multiple communications throughout early 2025, including news releases dated February 24, 2025 and March 26, 2025, as well as in its Management and Information Circular dated January 31, 2025 available at https://www.helixbiopharma.com/wp-content/uploads/2025/03/Management-Information-Circular-31-January-2025.pdf. The letter of intent has now expired according to its terms, and Helix has elected not to proceed with binding agreements.
This decision reflects the company's careful assessment of current market conditions and evolving corporate objectives. The termination of the GEM facility represents a significant shift in Helix's financing approach, indicating that management believes alternative funding structures may better serve the company's strategic direction and shareholder interests in the current economic environment.
Despite this development, Helix remains actively engaged in discussions with financial partners to explore alternative financing options. The company maintains its commitment to securing necessary capital to advance its clinical programs, particularly its lead candidate Tumor Defense Breaker™ L-DOS47, which has completed Phase Ib studies in non-small cell lung cancer. Additional details about the company's meeting outcomes and financing considerations are documented at https://www.helixbiopharma.com/fy2025/helix-biopharma-corp-announces-voting-results-from-its-annual-general-and-special-meeting/.
The company's pipeline also includes two pre-IND candidates: LEUMUNA™, an oral immune checkpoint modulator targeting post-transplant leukemia relapse, and GEMCEDA™, a first-in-class oral gemcitabine prodrug designed to expand treatment options for advanced cancers. The financing decision underscores the challenges faced by clinical-stage biopharmaceutical companies in balancing immediate capital needs with long-term strategic positioning in volatile markets.
Curated from NewMediaWire
