On February 23, 2024 TME Pharma N.V. (Euronext Growth Paris: ALTME), a biotechnology company focused on developing novel therapies for treatment of cancer by targeting the tumor microenvironment (TME), reported results of the final exercise of Warrants Y and an update on the outstanding number of ordinary shares, Warrants Y and Warrants Z (Press release, TME Pharma, FEB 23, 2024, View Source [SID1234640428]). The exercise of 8,539,955 Warrants Y has triggered the issuance of 3,415,982 new shares for gross proceeds of €853,995.50. The net proceeds from the exercise extend the company’s cash runway from May 2024 into early July 2024.

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"We are very pleased to announce the results of our latest successful warrant exercise, which reflects strong support demonstrated by a very high participation from our existing shareholders, extending our financial visibility into early July – well past the upcoming regulatory milestones," said Aram Mangasarian, CEO of TME Pharma. "We would like to thank our shareholders for their ongoing support and confidence in our mission. We believe that the recent termination of our convertible debt program and the end of the company’s reliance on convertible bond financing have alleviated pressure on the share price and contributed to the success of this exercise. We are now looking forward to achieving our next targeted clinical and regulatory milestones, notably approval of the Investigational New Drug application for NOX-A12 in glioblastoma and a response to our Fast Track request targeted by quarter’s end, both of which are important milestones in advancing the development of our lead asset to become the best available therapy for aggressive brain cancer patients."

When exercising 5 Warrants Y held, a holder was entitled to subscribe for 2 ABSA Z at an exercise price of €0.25 per ABSA Z, each comprised of one new ordinary ALTME share and one Warrant Z (Bon de souscription d’actions Z). As a result of the exercises that took place during the final exercise period between February 10-16, 2024, 3,415,982 new ordinary shares and 3,415,982 Warrants Z are being issued by TME Pharma and settled today. Warrants Y that were not exercised by February 16, 2024, have become null and void. The following numbers of TME Pharma securities are thus issued and outstanding:

ALTME ordinary shares (ISIN: NL0015000YE1): 27,853,843
Warrants Y (ISIN : NL0015001SS1): 0 (all have either been exercised or expired)
Warrants Z (ISIN: NL0015001SR3): 3,805,728.
As a reminder, in the first exercise period, from January 10-16, 2024, 974,365 Warrants Y were exercised for €97,436.50, resulting in issuance of 389,746 new ordinary shares and 389,746 Warrants Z.

The first Warrant Z exercise period will run from February 26 to March 22, 2024, with settlement on March 29, 2024. For every 4 Warrants Z held, a holder is entitled to subscribe for 5 new shares at €0.20 per share. Warrants Z may be exercised through June 20, 2025. Outstanding 3,805,728 Warrants Z have potential to raise additional €951,432 if exercised in full before the end of the final exercise period on June 20, 2025.

Additional Information
The characteristics, terms and conditions and dilution resulting from the transaction are summarized in the press releases published on November 24 and November 28, 2023 and in the dedicated Rights Issue page on the TME Pharma website.

Dilution
The table below summarizes the dilution from the new ordinary shares issued today, and the maximum additional dilutive potential for an investor who did NOT participate in the transaction should all potential Warrants Z be exercised. Shareholders who participated fully in the transaction, i.e. who purchased the ABSA Y and subsequently exercise both Warrants Y and Z will not be diluted by this transaction.

Description

Shares to be issued

Total shares outstanding

Dilution (cumulative)

Shareholder starting with 1% on February 22, 2024, would then hold

Outstanding shares on February 22, 2024

–

24,437,861

–

1%

Shares Issued on February 23, 2024, from exercise of 8,539,955 Warrants Y

3,415,982

27,853,843

12.26%

0.88%

Exercise of Warrant Z (latest on June 20, 2025)

4,757,160

32,611,003

25.06%

0.75%