Press release
Paris, 8th December 2020
Levine Keszler advises AB Science on European Investment Bank funding to support the clinical development programme evaluating masitinib in the treatment of Covid-19
AB Science and the European Investment Bank (the ‘ EIB “), the bank of the European Union, have entered into a €15.0 million financing agreement to support the clinical development program for masitinib (the ” Covid-19 Loan ’).
The Covid-19 Loan will enable AB Science to fund the clinical development program evaluating masitinib in the treatment of Covid-19, as masitinib is likely to be effective in the treatment of Covid-19 due to its recently discovered dual anti-inflammatory and antiviral mechanism of action.
The Covid-19 Loan consists of two tranches of six million euros each and a third tranche of three million euros to be released progressively, subject to the achievement of certain milestones, including clinical progress in AB Science’s Covid-19 study and future equity financing by AB Science.
The Covid-19 Loan is complemented by an agreement to issue warrants (the ‘ Warrants ’) to the EIB. The number of warrants to be issued by AB Science when each tranche of the Covid-19 Loan is drawn down will depend on AB Science’s reference price prior to the drawdown of each tranche and the amount of the tranche in question.
This financing is supported by the European Fund for Strategic Investments, the financial core of the Investment Plan for Europe, under which the EIB and the European Commission join forces to undertake priority investments in the European Union. It is also based on the InnovFin Risk Sharing Facility, which targets corporate research initiatives supported by Horizon 2020, the European Union’s framework programme for research and innovation.
Combining the expertise of the EIB and the support of the European Commission with the InnovFin guarantee has enabled an innovative and tailor-made financing package to be put in place, tailored to the needs of AB Science.
Levine Keszler advised AB Science on this transaction.
Counsel to AB Science :
Levine Keszler ( Pierre Treille and Aude Manzo-Keszler, partners, Mickaël Guillemot)
Counsel to the European Investment Bank :
Hogan Lovells (Olivier Fille-Lambie, Ariane Berthoud and Antoine Baroulier)
The full press release is attached.
