Spexis

Nov 29, 2023

Spexis Provides Update Regarding Debt-Restructuring Moratorium November 29, 2023 at 01:17 am EST Share Spexis Provides Update Regarding Debt-Restructuring Moratorium 29-Nov-2023 / 07:15 CET/CEST The issuer is solely responsible for the content of this announcement. Allschwil, Switzerland, November 29, 2023 Spexis AG (SIX: SPEX), a clinical-stage biopharmaceutical company focused on macrocycle therapeutics for rare diseases and oncology, today announced that it is in discussions with SPRIM Global Investments (“SGI”) to restructure its current financing agreements with SGI, and to seek new financing from SGI, with a view to supporting the advancement of the COPILOT trial, the first part of the ColiFin® Phase 3 program. As Spexis has announced in its press release on 8 November 2023, SGI issued notices of events of default in respect of the existing loans granted by SGI to Spexis and Spexis Australia Pty Ltd. SGI have subsequently taken actions  to enforce certain security interests which Spexis and its subsidiaries have granted in favour of SGI in connection with such loans including the shares of EnBiotix, Inc. and Spexis Australia Pty Ltd, and certain of the intellectual property housed within these entities and their subsidiaries. Notwithstanding the enforcement actions undertaken by SGI and contested by Spexis, SGI has agreed in good faith to enter into discussions with Spexis with the view to reaching an agreement on a potential restructuring of the loans from SGI which may include the provision of an additional capital commitment, with the ultimate purpose of supporting the progression of the COPILOT trial. In parallel with the above, Spexis has submitted a request for a moratorium on debt enforcement (Nachlassstundung) to the Western District Court of the Canton Basel-Landschaft as indicated in its recent press release to further restructure and reposition the Company. The plan submitted to the court includes a cost reduction, a restructuring of the debt with major secured and unsecured creditors, a continuation of the COPILOT trial in case additional financing can be obtained and a sale of other assets. “We remain committed to advancing ColiFin® through its Phase 3 program and closer to patients suffering from chronic cystic fibrosis infections in need of new treatment options and are grateful to our partners at SGI for their good faith effort to explore a path forward,” said Jeff Wager, M.D., Chairman & CEO of Spexis. “We look forward to a potential resolution while jointly maintaining momentum and if possible further progress on the initiation of our planned COPILOT study in the near future. Naturally, no assurance can be given that any of these and other efforts will eventually be successful [in restoring the company from moratorium], but believe the path described provides the best possible chance to achieve this goal.”