Helix BioPharma Corp. (TSX: HBP, OTC PINK: HBPCF, FRANKFURT: HBP0), a clinical-stage oncology company, announced today the closing of a non-brokered private placement of unsecured convertible debentures, raising aggregate gross proceeds of C$3,673,000.
The company issued 3,673 Convertible Debentures, each with a principal amount of C$1,000. The debentures carry a 25.00% per annum simple interest rate and mature 14 months from the closing date. If not repaid by the Maturity Date, holders may convert the outstanding principal into common shares at a price of C$1.42 per share, which represents the market price as of the price reservation date less the permitted 20% discount under TSX policies. Accrued but unpaid interest may also be converted at the greater of the Conversion Price or the volume-weighted average trading price over the five trading days preceding conversion, less the TSX permitted discount.
The net proceeds will be used for general working capital and to advance the company’s drug development programs. No finder’s fees were paid in connection with the offering. The Convertible Debentures and any shares issuable are subject to a statutory four-month hold period from the closing date.
Helix BioPharma focuses on developing therapies for hard-to-treat cancers. Its pipeline includes L-DOS47, a clinical-stage antibody-enzyme conjugate designed to prime CEACAM6-expressing tumors for increased sensitivity to therapy. L-DOS47 has completed Phase Ib studies in non-small cell lung cancer (NSCLC). The company is also developing next-generation bi-specific antibody-drug conjugates (ADCs) based on the same CEACAM6-targeting foundation, currently in discovery. Additionally, Helix advances two pre-IND candidates: LEUMUNA™, an oral immune checkpoint modulator for post-transplant leukemia relapse, and GEMCEDA™, a first-in-class oral gemcitabine prodrug with bioavailability comparable to IV administration.
The high interest rate on the debentures reflects the risk profile of the company and the terms of the financing. The conversion price discount provides potential upside for investors if the company’s share price appreciates. This capital infusion is crucial for Helix to continue its clinical programs and reach key milestones. For more information about Helix BioPharma, visit https://www.helixbiopharma.com/.
