GenSight Biologics obtains €15m in financing through a bond issuance from Kreos Capital and a reserved capital increase from Sofinnova and 3SBio

By 20/12/2019June 4th, 2021No Comments

GenSight Biologics (Euronext: SIGHT, ISIN: FR0013183985, PEA-PME eligible) (the “Company” or “GenSight“), a biopharma company focused on discovering and developing innovative gene therapies for retinal neurodegenerative diseases and central nervous system disorders, today announced that it had obtained committed financing in the form of a bond financing of up to €12 million from Kreos Capital VI (UK) Limited (“Kreos“) and issued a drawdown notice thereunder for the first tranche of €6 million (the “Kreos Transaction“) concurrently with the completion of a capital increase of €9 million subscribed for by one of its main shareholders Sofinnova Crossover I SLP (“Sofinnova“) and by a new strategic Chinese investor Strategic International Group Limited, a wholly owned subsidiary of 3SBio Inc.  (“3SBio“) (the “3SBio-Sofinnova Transaction“).

Bernard Gilly, Co-founder and Chief Executive Officer of GenSight, stated: “This successful refinancing transaction is expanding our financial runway to the end of 2020, with minimal dilution, as we are entering into a pivotal year for GenSight. We are thrilled to see Sofinnova renewing their trust at this turning point, while the entry of 3SBio will pave the way towards creating additional value in Greater China.”

Dr. Jing Lou, Chairman and Chief Executive Officer of 3SBio, stated: “The investment in Gensight is consistent with our goal to explore promising therapeutic strategies. Gene therapy technology will be one of most promising platforms for filling the unmet medical needs. As trained professional myself with 3SBio being one of largest biopharmaceutical company in China, I am excited about the potential opportunities to collaborate with Gensight in greater China.”

Cédric Moreau, Partner of Sofinnova Crossover I fund, stated: “We are truly encouraged by the recent progress achieved by the company, particularly with both ATU granted in France and REALITY registry interim data, supporting the therapeutic benefit delivered by LUMEVOQ™.”

The Kreos Transaction includes a €10 million straight bond issuance divided into two tranches of €6 million and, subject to a Qualifying Financing[1], €4 million, respectively (including 30% of each tranche to be issued in the form of convertible bonds at Kreos’ option). Each tranche includes a simultaneous issuance of warrants.

The Company today announces the issuance of a drawdown notice for the first tranche of the Kreos Transaction for a total amount of €6 million, including a €4.2 million straight bond issuance and a €1.8 million convertible bonds issuance.

The second tranche of the Kreos Transaction may be drawn down at the Company’s option, at any time up to September 1st, 2020.

Subject to the mutual consent of the parties, an additional tranche of €2 million may be made available at a later date, increasing the total bond financing to €12 million.

The 3SBIO-Sofinnova Transaction includes an aggregate of €9 million capital increase subscribed by 3SBio, a leading biopharmaceutical company in China, and Sofinnova, lead investor in GenSight Biologics, for €5 and €4 million, respectively.


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