Allergy Therapeutics Subscription to raise £7 million

Allergy Therapeutics plc (LON:AGY), the fully integrated specialty pharmaceutical company specialising in allergy immunotherapy, today announces a conditional Subscription by the Subscribers, Southern Fox and ZQ Capital (acting through its affiliate SkyGem), to raise £7 million at an Issue Price of 20 pence per Ordinary Share and the issue to the Note Purchasers, Southern Fox and ZQ Capital, of Loan Notes to raise a further £10 million. In addition, in conjunction with the issue of Loan Notes, the Company will issue 33,333,332 Warrants to the Note Purchasers to subscribe for new Ordinary Shares at a Warrant Exercise Price of 30 pence per Warrant.

Net proceeds raised from the Subscription and Debt Financing will be used, inter alia, to complete the Group’s Phase I peanut trial and Grass Phase III trial following trial design optimisation to increase the chances of success of these important trials. The Directors believe VLP Peanut, has the potential to become a best-in-class treatment for peanut allergy with a revenue potential of more than US$1 billion per annum whilst a successful Grass Phase III trial presents a significant future opportunity to grow grass allergy product sales by transitioning from named patient sales to registered product sales and launch in the United States. The trials are due to commence in 2022.

Pursuant to the terms of Subscription Letters and the Loan Note Agreement and subject to certain conditions including the passing of the Resolutions at the General Meeting, the Company has agreed to issue the Subscription Shares and the Loan Notes to Southern Fox and ZQ Capital (acting through its affiliate SkyGem in relation to the Subscription).

The Subscription and the Debt Financing are conditional, inter alia, on the passing of the Resolutions by the Shareholders at the General Meeting, which it is intended will be convened for 11 a.m. on 17 October 2022. If the Resolutions are passed, the Subscription Shares are expected to be allotted after the General Meeting, conditional on Admission, which is expected to occur on or around 8.00 a.m. on 19 October 2022. Should Shareholder approval not be obtained at the General Meeting, neither the Subscription nor the Debt Financing will proceed. Neither the Subscription nor the Debt Financing has been underwritten.

Set out below in Appendix I is an adapted extract from the draft Circular that is proposed to be sent to Shareholders which provides further information on the Company, the Subscription and the Debt Financing. The final Circular, containing the Notice of General Meeting will be sent to Shareholders and published on the Company’s website on or around 29 September 2022.

The capitalised terms not otherwise defined in the text of this Announcement are defined in Appendix II and the expected timetable of the principal events is set out in Appendix III.

Manuel Llobet, Chief Executive Officer at Allergy Therapeutics, commented:

“This raise secures the remainder of the funding of the Phase I PROTECT trial, and progression into phase II, of VLP Peanut, our peanut allergy vaccine candidate, and funds the further development of our short-course grass pollen immunotherapy, Grass MATA MPL. These are two products that have the potential to become best-in-class allergy treatments and could offer a paradigm shift in the treatment of allergic disorders. I would like to thank our existing shareholders, Southern Fox and ZQ Capital, for their ongoing support and their belief in our pioneering research to deliver transformational outcomes for allergy patients.”

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