Paris, November 6, 2019, 8.30am
AB Science has signed a financing agreement in order to pre-finance
the 2019 research tax credit
This agreement ensures company is capitalized until the end of Q2 2020
AB Science SA (NYSE Euronext - FR0010557264 - AB) announces it has signed a financing agreement with an investor, in order to pre-finance the 2019 research tax credit (CIR).
The proceeds are available immediately if required and are equal to the higher between USD 5.5M or 90% of the estimated amount of the 2019 CIR. The 2019 estimated CIR amount will be updated on a monthly basis until the end of 2019, based on the evolution of the company’s R&D costs used in the CIR calculation.
The interest rate applicable to the loan is equal to US Libor 3 month + 2.50% per annum.
The draw down of the funds can only be made at the sole discretion of AB Science. In the event that AB Science draws down the funds, the company will repay the loan to the investor following the reimbursement of the 2019 research tax credit by the Public Finance Department, which is expected in the second half of 2020.
Based on the current cash burn rate, this agreement provides additional financial flexibility and ensures AB Science is capitalized until the end of Q2 2020.
About the research tax credit (Crédit Impôt Recherche, CIR)
The research tax credit (CIR) is a tax incentive in the French tax code, designed to encourage research and company development efforts in industry. The tax credit is determined on the basis of the eligible R&D expenses incurred by a company during the calendar year. Currently, the R&D credit equals 30% of the R&D eligible expenses incurred during the year, up to EUR 100 million in eligible R&D expenses, and 5% beyond this amount.
About AB Science
Founded in 2001, AB Science is a pharmaceutical company specializing in the research, development and commercialization of protein kinase inhibitors (PKIs), a class of targeted proteins whose action are key in signaling pathways within cells. Our programs target only diseases with high unmet medical needs, often lethal with short term survival or rare or refractory to previous line of treatment.
AB Science has developed a proprietary portfolio of molecules and the Company’s lead compound, masitinib, has already been registered for veterinary medicine and is developed in human medicine in oncology, neurological diseases, and inflammatory diseases. The company is headquartered in Paris, France, and listed on Euronext Paris (ticker: AB).
Further information is available on AB Science’s website: www.ab-science.com.
Forward-looking Statements - AB Science
This press release contains forward-looking statements. These statements are not historical facts. These statements include projections and estimates as well as the assumptions on which they are based, statements based on projects, objectives, intentions and expectations regarding financial results, events, operations, future services, product development and their potential or future performance.
These forward-looking statements can often be identified by the words "expect", "anticipate", "believe", "intend", "estimate" or "plan" as well as other similar terms. While AB Science believes these forward-looking statements are reasonable, investors are cautioned that these forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict and generally beyond the control of AB Science and which may imply that results and actual events significantly differ from those expressed, induced or anticipated in the forward-looking information and statements. These risks and uncertainties include the uncertainties related to product development of the Company which may not be successful or to the marketing authorizations granted by competent authorities or, more generally, any factors that may affect marketing capacity of the products developed by AB Science, as well as those developed or identified in the public documents filed by AB Science with the Autorité des Marchés Financiers (AMF), including those listed in the Chapter 4 "Risk Factors" of AB Science reference document filed with the AMF on November 22, 2016, under the number R. 16-078. AB Science disclaims any obligation or undertaking to update the forward-looking information and statements, subject to the applicable regulations, in particular articles 223-1 et seq. of the AMF General Regulations.
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