BRAIN Biotech AG Announces EUR 5.0 Million Convertible Bond Placement for Growth Initiatives

BRAIN Biotech AG has successfully issued a convertible bond with a nominal value of EUR 5.0 million, aimed at financing growth initiatives and general corporate purposes. This financial maneuver was approved by the company's supervisory board and leverages the authorization from the annual general meeting held on March 8, 2023. The bonds, which carry an interest rate of 6.52% per annum, were placed privately with MP Beteiligungs-GmbH, excluding the subscription rights of existing shareholders.

The initial conversion price is set at EUR 5.04, showing a 27% premium over the reference share price of EUR 3.97, with the bonds maturing on September 5, 2026. CEO Adriaan Moelker expressed gratitude towards their anchor shareholder for the support, viewing the transaction as a vote of confidence in their business strategy. CFO Michael Schneiders highlighted the addition of this equity-linked transaction to their financing toolbox, primarily focused on non-dilutive instruments, and previewed the plans to propose EUR 5 million non-dilutive silent participations at the upcoming AGM on March 12th. According to Schneiders, these financial strategies position the company for adequate funding in the future.