PAION AG / Corporate Action
10.05.2010 16:07
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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PAION AG ENTERS INTO AN EQUITY FACILITY AGREEMENT FOR EUR 15 MILLION
- Equity facility for EUR 15 million gives PAION the right to issue new
shares out of the existing authorised capital during a 3 year period
- Facility strengthens PAION's financial situation and extends the cash
reach
Aachen (Germany), 10 May 2010 - The biopharmaceutical company PAION AG
(ISIN DE000A0B65S3; Frankfurt Stock Exchange, Prime Standard: PA8) has
entered into an equity facility agreement for EUR 15 million with Commerce
Court Small Cap Value Fund Ltd. (CCSCVF) managed by Acqua Capital
Management Inc., Toronto, Canada. This share facility has a term of 36
months and gives PAION the right to issue new shares out of the existing
authorised capital in multiple tranches to CCSCVF against a cash
contribution. PAION intends to use this facility in the first instance to
strengthen its cash position and extend its cash reach.
CCSCVF has committed to buy these shares at a price calculated based on a
daily volume weighted average share price over a five day period (Pricing
Period) less a discount of 5%. CCSCVF guarantees a minimum investment
amount per tranche within a range from EUR 150,000 to EUR 1,300,000
dependent on the share price (within a range from EUR 1.00 to and exceeding
EUR 8.00). Both parties can agree on higher amounts per tranche.
Furthermore, PAION has the right to determine for every tranche a floor
price below which PAION is not obliged to issue shares. After the end of
the Pricing Period, PAION will announce on its website the number of
subscribed shares as well as the achieved placement price.
CCSCVF has agreed that during the term of and for a period of 90 days after
the termination of the Agreement, neither CCSCVF nor any of its affiliates
will, directly or indirectly, sell, or enter into a short position with
respect to any of PAION's shares except the shares that it owns or has the
right to purchase pursuant to the provisions of a draw down notice.
###
Contact
Ralf Penner
Director Investor Relations & Public Relations
PAION AG
Martinstrasse 10-12
52062 Aachen - Germany
Phone: +49 241 4453-152
E-mail: r.penner@paion.com
www.paion.com
Disclaimer:
This release contains certain forward-looking statements concerning the
future business of PAION AG. These forward-looking statements contained
herein are based on the current expectations, estimates and projections of
PAION AG's management as of the date of this release. They are subject to a
number of assumptions and involve known and unknown risks, uncertainties
and other factors. Should actual conditions differ from the Company's
assumptions, actual results and actions may differ materially from any
future results and developments expressed or implied by such
forward-looking statements. Considering the risks, uncertainties and other
factors involved, recipients should not rely unreasonably upon these
forward-looking statements. PAION AG has no obligation to periodically
update any such forward-looking statements to reflect future events or
developments.
10.05.2010 16:07 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: PAION AG
Martinstr. 10-12
52062 Aachen
Deutschland
Phone: +49 (0)241-4453-0
Fax: +49 (0)241-4453-100
E-mail: info@paion.com
Internet: www.paion.com
ISIN: DE000A0B65S3
WKN: A0B65S
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: PAION AG ENTERS INTO AN EQUITY FACILITY AGREEMENT FOR EUR 15 MILLION
| Source: EQS Group AG