BRAIN Biotech AG Announces Issuance of EUR 5 Million Convertible Bond

BRAIN Biotech AG, based in Zwingenberg, Germany, revealed on 29 February 2024, that its management board, with the approval of the supervisory board, decided to issue convertible bonds worth EUR 5 million. This decision utilizes the authorization from the annual general meeting held on 8 March 2023. The issuance excludes the subscription rights of the company’s existing shareholders, with only MP Beteiligungs-GmbH approved to subscribe for and underwrite the bonds.

The bonds, issued at a denomination of EUR 1,000 each, will presumably be released on 5 March 2024 at their nominal value. These bonds will carry an interest rate of 6.52% per annum, maturing for repayment on 5 September 2026 unless converted or repaid earlier. The initial conversion price is set at EUR 5.04, presenting a 27% premium above the reference share price of EUR 3.97, based on the volume-weighted average price of the shares over the last three trading sessions.

The company has no plans to allow these convertible bonds to be traded on any stock exchange. Instead, the net proceeds from this issue will be directed towards general corporate financing, aiming to support the company’s broader financial strategy and growth.