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Inflammatory conditions medicine developer Mesoblast (ASX:MSB) is trading up more than 3% after striking a funding deal with its largest shareholder Gregory George for AUD$72.7 million in convertible notes.
The funds will be available for the company to unleash its marketing strategy, once it has US Food and Drug Administration approval for Mesoblast’s lead cellular drug candidate Ryoncil for the treatment of children with steroid refractory acute graft versus host disease, which can be a complication of stem cell transplants.
Mesoblast expects that FDA decision will land by early next year.
It will access the funding in US$10 million tranches with the scrip value at AUD$1.32 per share, representing a 25% premium to last week’s 5-day average weighted share price.
Gregory George is a US investor with the company G to the Fourth Investments.
Mesoblast chief executive and founder Dr Silviu Itescu said the support from Mr George was appreciated.
“We appreciate the ongoing support from our major shareholder in ensuring that the company is well capitalized for commercial product launch and can hit
the ground running immediately following approval of RYONCIL by FDA,” he said.
Mesoblast was trading around $1.16 at 11.24 (AEST).
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