Allergy Therapeutics, a biotechnology company specializing in allergy vaccines, has announced an amendment to its existing Facility Agreement. The company has entered into an amended funding agreement and related warrant instrument with SkyGem Acquisition Limited, an affiliate of ZQ Capital Management Limited and Southern Fox Investments Limited. The amended facility provides Allergy Therapeutics with a £40 million secured loan facility, of which £7.5 million is committed and £32.5 million is uncommitted. The facility is available for drawdown from January 15, 2024, until January 15, 2026, with interest payable semi-annually at 12% per annum and a repayment date of January 15, 2027.

In addition, Allergy Therapeutics has entered into an agreement to issue warrants to the lenders following each drawdown under the amended facility. The warrants will entitle the holders to subscribe for new ordinary shares at a price of 4 pence per share. The entitlement to warrants will be 25 warrants for each £1 drawn down, with a maximum of 1,000,000,000 warrants. The warrants will be exercisable from July 1, 2024, until January 15, 2027. The company intends to seek shareholder approval for the issuance of warrants at a general meeting to be held no later than July 1, 2024.

The amended facility is considered a related party transaction, as ZQ Capital and Southern Fox are substantial shareholders of Allergy Therapeutics. The independent directors of the company, excluding Zheqing (Simon) Shen and Anthony Parker, have deemed the terms of the amended facility to be fair and reasonable for the company's shareholders.

For further information, please contact Allergy Therapeutics or visit their website.