Press Release

Nicox extends cash runway beyond 2020 with bond financing from Kreos Capital of up to €20 million

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  • €8 million drawn down immediately; two additional tranches of €7 million and €5 million available in the future to be drawn down at Nicox's discretion
  • Including current cash on hand and expected revenues, use of the full bond financing could extend Nicox's cash runway beyond 2020
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January 25th , 2019 - release at 7:30 am CET
Sophia Antipolis, France

Nicox SA (Euronext Paris: FR0013018124, COX), an international ophthalmology company, today announced it has entered into a bond financing for up to €20 million from Kreos Capital.

Michele Garufi, Chairman and CEO of Nicox, said: "Based on the royalty stream from VYZULTA, and the expected revenue from ZERVIATE, we were able to secure a substantial, staged financing to allow us to keep executing on plan, push our lead clinical programs NCX 470 and NCX 4251 forward beyond the Phase 2 results, which are expected later this year, and potentially extend our cash runway into 2021."

This financing of up to €20 million, structured as bonds, consist of 3 tranches.  The first tranche of €8 million will be drawn down on or about February 1st , 2019, and the company has the option, but no obligation, to draw down a further maximum amount of €7 million on August 1st, 2019, and a maximum amount of €5 million on November 1st, 2019. There are no material conditions to be met in order for Nicox to draw down the additional tranches.  The bond financing is senior and secured by customary pledges over certain tangible and intangible assets of Nicox and Nicox Ophthalmics, Inc.

As part of this financing, Kreos will receive 308,848 warrants for 308,848 Nicox shares, equivalent to approximately 1% of the present outstanding capital of the company.

Maurizio Petitbon, General Partner of Kreos Capital said: "We are delighted to be supporting Nicox as the Company advances the development of their ophthalmology business."

About the Financing

Financing structure €20 million straight bonds with a nominal value of €1
Draw down Tranche A: €8 million on February 1st, 2019
Tranche B: €7 million on August 1st, 2019 (optional)
Tranche C: €5 million on November 1st, 2019 (optional)
Term 4 years for each tranche
Interest rate 9.25%
Repayment schedule For each tranche, 12 months interest only payments followed by 36 months amortization in equal monthly instalments comprising principal and interest
Security Security over certain assets including intellectual property rights
Warrants Kreos will receive 308,848 warrants, each giving a right to acquire one share in Nicox at an exercise price of €5.99.  The warrants may be exercised immediately and over a 5 year period. No specific restriction applies to the exercise of the warrants.

 

A shareholder holding 1% of the capital of the Company before the issue of the warrants would hold 0.99% after the exercise of the warrants (on the basis of the number of shares composing the share capital of the Company as of December 31, 2018).

The Board of directors approved this financing on January 23, 2019.  The issuance of the bonds and warrants does not require a prospectus submitted to a visa of the French AMF ("Autorité des Marchés Financiers"). Neither the bonds nor the warrants shall be listed on Euronext Paris.

The price of the ordinary shares to be issued upon exercise of the warrants is equal to the closing share price on the last trading day prior to the determination of the issue price in accordance with the terms of the 8th resolution of the extraordinary shareholder meeting of May 24, 2018 allowing the issuance of securities for the benefit of a category of beneficiaries, the preferential right of subscription of the shareholders being waived, pursuant to which the warrants are issued.  The shares obtained by exercise of the warrants will be ordinary shares of Nicox listed on Euronext Paris.

About Kreos Capital

Kreos Capital is the leading provider of growth debt financing in Europe and Israel to companies with high potential.  Since 1998, Kreos has completed over 500 transactions and committed over €2.0 billion in 15 different countries.  Kreos is dedicated to supporting management teams and their equity investors with flexible loan structures for all stages of a growth company's development and to addressing the needs for growth capital, working capital, acquisition financings, lower mid-market buy-outs, roll-up strategies, bank re-financings as well as pre-and post-IPO financings.  The Kreos global team has extensive debt financing, management and equity investing experience, covering the pan-European market from its locations in London, Tel Aviv and Stockholm.

About Nicox

Nicox S.A. is an international ophthalmology company developing innovative solutions to help maintain vision and improve ocular health.  By leveraging our proprietary expertise in nitric oxide (NO) donation and other technologies, we are developing an extensive portfolio of novel product candidates that target multiple ophthalmic conditions, including glaucoma.  Our portfolio includes three programs in development including NCX 470 for intraocular pressure lowering, based on our proprietary NO-donating research platform and NCX 4251, a proprietary formulation of the well-established molecule fluticasone, for acute exacerbations of blepharitis.  Our research activities are focused on novel future generation NO-donors including NO-donating phosphodiesterase-5 (PDE5) inhibitors and NO-donating soluble guanylate cyclase (sGC) stimulators (in partnership with Ironwood).  In addition, we have two ophthalmology assets that have been approved by the U.S. Food and Drug Administration (FDA); VYZULTA® (latanoprostene bunod ophthalmic solution), 0.024%, exclusively licensed worldwide to Bausch + Lomb, a Bausch Health Companies Inc. company, and commercialized in the U.S. by Bausch + Lomb since December 2017, as well as ZERVIATE(TM) (cetirizine ophthalmic solution), 0.24%, exclusively licensed in the U.S. to Eyevance Pharmaceuticals.  Nicox is headquartered in Sophia Antipolis, France, is listed on Euronext Paris (Compartment B: Mid Caps; Ticker symbol: COX) and is part of the CAC Healthcare, CAC Pharma & Bio and Next 150 indexes.

For more information on Nicox, its products or pipeline, please visit: www.nicox.com

Analyst coverage

Bryan, Garnier & Co   Hugo Solvet                 Paris, France

The views expressed by analysts in their coverage of Nicox are those of the author and do not reflect the views of Nicox. Additionally, the information contained in their reports may not be correct or current. Nicox disavows any obligation to correct or to update the information contained in analyst reports.

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Contacts

Nicox
Gavin Spencer,
Executive Vice President, Chief Business Officer
T +33 (0)4 97 24 53 00
communications@nicox.com

Investors & Media
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Media
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Disclaimer
The information contained in this document may be modified without prior notice. This information includes forward-looking statements. Such forward-looking statements are not guarantees of future performance. These statements are based on current expectations or beliefs of the management of Nicox S.A. and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Nicox S.A. and its affiliates, directors, officers, employees, advisers or agents, do not undertake, nor do they have any obligation, to provide updates or to revise any forward-looking statements.

Risks factors which are likely to have a material effect on Nicox's business are presented in the 4th chapter of the 'Document de référence, rapport financier annuel et rapport de gestion 2017' filed with the French Autorité des Marchés Financiers (AMF) on March 19, 2018, which are available on Nicox's website (www.nicox.com).
Nicox S.A.
Drakkar 2
Bât D, 2405 route des Dolines
CS 10313, Sophia Antipolis
06560 Valbonne, France
T +33 (0)4 97 24 53 00
F +33 (0)4 97 24 53 99