Convertible bond amortization payment deferred by mutual agreement with HCM
Faron Pharmaceuticals Ltd. has mutually agreed with Heights Capital Management, Inc. to defer amortisation payments totaling EUR 1,400,000, comprising EUR 840,000 for the First Tranche Bonds and EUR 560,000 for the Second Tranche Bonds, originally due October 2, 2026. These amounts will now be due at the respective final maturity dates of April 2, 2028, and December 2, 2028. Additionally, interest payments of EUR 63,000 and EUR 98,000, also due October 2, 2026, have been deferred to December 2, 2026, with no further interest accruing on the deferred interest. All other bond terms remain unchanged, and the company views this as a measure to limit near-term dilution and provide financial flexibility.
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| Faron Pharmaceuticals Ltd | Company announcement | September 30, 2026 at 09:00:00 EEST |
Turku, Finland – Faron Pharmaceuticals Ltd. (AIM: FARN, First North: FARON), a clinical-stage biopharmaceutical company developing novel immunotherapies, announces that the Company and Heights Capital Management, Inc. (“HCM”) have mutually agreed to defer the amortisation payment of the First and Second Tranche Bonds (as defined below) scheduled for 2 October 2026.
The Company announced on 3 April 2025 that it had entered into a convertible bond arrangement for up to EUR 35 million with an entity managed by HCM and resolved upon the issuance of amortising senior unsecured convertible bonds with an aggregated principal amount of EUR 15 million (the “First Tranche Bonds”) due 2 April 2028 to HCM, convertible into new and/or existing shares in the Company (the “Shares”). On 11 December 2025 the Company announced that it had resolved upon the issuance of a second tranche of convertible bonds amounting to EUR 10 million (the “Second Tranche Bonds”) due 2 December 2028, to HCM, convertible into new and/or existing Shares in the Company.
The deferred amortisation amounts to EUR 840,000 for the First Tranche Bonds and EUR 560,000 for the Second Tranche Bonds, EUR 1,400,000 in total (the "Deferred Amount"). The Deferred Amount will be due on the final maturity date of the respective tranche, being 2 April 2028 for the First Tranche Bonds and 2 December 2028 for the Second Tranche Bonds.
The Company and HCM have also agreed to defer the payment of the interest amounts otherwise due on 2 October 2026 (being EUR 63,000 in respect of the First Tranche Bonds and EUR 98,000 in respect of the Second Tranche Bonds) until the next interest payment date, scheduled for 2 December 2026. No interest will accrue on the deferred interest.
All other terms and conditions of the First and Second Tranche Bonds remain unchanged.
"We appreciate the continued support of Heights Capital Management and value our long-term partnership. This mutually agreed deferral limits near-term dilution for our shareholders and gives us additional flexibility as we continue to advance bexmarilimab. All other terms of the bonds remain unchanged," says Jurriaan Dekkers, CFO of Faron.
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