Genfit announces final terms for dual proposal to 2025 Oceanes holders

Genfit (GNFT) announced the final terms of the 2025 Oceanes repurchase proposal and the consent fee that would be paid to the holders of 2025 Oceanes still outstanding after cancellation of repurchased 2025 Oceanes. On January 30, Genfit announced that it has entered into a non-dilutive capped royalty financing agreement with HealthCare Royalty for up to EUR 185M. This transaction significantly extends Genfit’s cash runway, including after the repayment of its bonds convertible into new shares and/or exchangeable into existing shares due October 16. Genfit also announced that it intended to offer to interested bondholders to repurchase their 2025 Oceanes. In the Royalty Financing, HCRx will be compensated and repaid out of a portion of the royalties which Genfit is eligible to receive on sales of Iqirvo pursuant to its long-term strategic partnership with Ipsen. To secure its obligations under the Royalty Financing, Genfit will transfer the corresponding royalty receivables to a French law trust for the benefit of the holders of the royalty financing bonds. The terms and conditions of the 2025 Oceanes contain a negative pledge clause which limits Genfit’s ability to grant security interests to its creditors on its present or future assets or revenues. Granting the fiducie-surete is not permitted under this clause. The closing of the Royalty Financing is thus conditioned upon the holders of the 2025 Oceanes approving an amendment to the negative pledge clause. If the amendment of terms is approved, and the closing of the royalty financing is completed, Genfit will pay a consent fee to the holders of 2025 Oceanes still outstanding after cancellation of the repurchased 2025 Oceanes. Concurrently with the amendment of terms, Genfit is proposing to repurchase the 2025 Oceanes of any interested holder.