Faron Pharmaceuticals Oy, a clinical stage biopharmaceutical company, has announced that it is in breach of several undertakings agreed in the secured debt agreement with IPF Fund II SCA, SICAV-FIAR. The company is in default and its bank accounts are pledged to IPF, with the latter notifying Faron's banks of the blocking of the Pledged Accounts due to the breaches. Faron is currently unable to remedy the breaches or make payments to third parties without separate consent from IPF. Negotiations for a possible restructuring of the loan facility and waiver of covenant obligations are ongoing with IPF.
The total cash and cash equivalents held by the company amount to approximately EUR 4.3 million, which is sufficient to cover the company's financing needs until the beginning of April 2024. Faron has provided contact information for investor inquiries and stated that a further announcement will be made in due course.
Faron Pharmaceuticals Ltd is a global, clinical-stage biopharmaceutical company focused on developing novel immunotherapies to tackle cancers. Its lead asset, bexmarilimab, is a novel anti-Clever-1 humanized antibody being investigated in Phase I/II clinical trials as a potential therapy for patients with hematological cancers in combination with other standard treatments.
The announcement contains forward-looking statements, reflecting the company's current beliefs and assumptions based on the information available to the Directors.