A team led by Dr. Thorsten Kuthe, Partner at Heuking Kühn Lüer Wojtek, advised bio healthcare company Belano Medical AG on issuing a convertible bond. Belano Medical intends to use the issue volume of up to EUR 15 million to accelerate its corporate growth.
The interest rate is fixed at 8.25% p.a. with annual maturity, paid in arrears. The bond will mature in five years. In a first tranche, Belano Medical is targeting an issuance volume of some four million euros in December. The conditions of the convertible bond take into account an optional IPO or sale of the company within the 5-year bond maturity. Bondholders may convert the Belano bond into shares at their discretion as of November 15, 2024. If there is neither an IPO, sale, nor voluntary exchange, the bond redemption price at maturity will be 100% plus the principal amount of accrued interest. The subscription period for the private placement, with a minimum subscription of EUR 100,000, started on December 1, 2020. From December 14, 2020, the bond is set to be tradable and listed in minimum tradeable units of EUR 1,000 on Frankfurt Stock Exchange’s Open Market. “Trading on terms of issue” is scheduled to commence on December 8, 2020.
Based in Hennigsdorf near Berlin, Belano Medical AG is a bio healthcare company which uses the results from research into microorganisms for medical and care products. Belano Medical develops and markets novel therapeutic approaches for medical skin care, for the prevention of diseases, and for supporting healing processes. It aims to create new therapy options for diseases and indications that have not been satisfactorily treated to date.
Counsel to Belano Medical AG
Heuking Kühn Lüer Wojtek:
Dr. Thorsten Kuthe (Lead, Capital Markets),
Miriam Schäfer (Capital Markets),
Dr. Gero Lingen (Capital Markets), all Cologne