Kinarus receives interest-free loan from China
11 May 2023 14:03
Kinarus Therapeutics Holding AG has concluded a strategic convertible bond agreement with the investment company ChaoDian Investment Management from Hangzhou. According to a press release from Kinarus, it entails an investment of 1.5 million Swiss francs being made to the Basel-based biotech company.
This agreement forms the basis for talks on introducing, developing, and commercializing Kinarus’ clinical candidate KIN001 for the treatment of idiopathic pulmonary fibrosis (IPF) in China. This is a severe disease with a high mortality risk. The currently approved drugs for this have only limited efficacy and often have substantial side effects. KIN001 targets several mechanisms underlying the progression of the disease and has the potential to reverse fibrosis and loss of respiratory capacity.
Specifically, the agreement between the two partners stipulates that the Chinese company will grant the loan for a fixed period of three years without interest. According to the information provided, the outstanding loan can be converted into Kinarus shares at any time during this period at a set price of 0.01 Swiss francs per share.
Dr. Hari Kumar, Chairman of the Board of Kinarus Therapeutics Holding AG, commented: “This partnership further validates the high potential value of KIN001 in IPF and other indications.” He went on to add: “This convertible loan will strengthen our financial position.” ce/mm