Mithra enters into exclusive negotiations with Gedeon Richter and secures continued funding in the context of its monetization process

Liege, Belgium, 3 May 2024 – 17:30 CEST – Mithra (Euronext Brussels: MITRA), a company dedicated to women’s health, today announces that, after diligent evaluation of several binding offers, Mithra has selected the offer submitted by Gedeon Richter, which relates to Estetra SRL, Neuralis SA and specific assets held by Mithra R&D SA related to the E4 platform, as a basis for further negotiations and decided to grant exclusivity to Gedeon Richter for the purpose of such negotiations  (up to 10 May 2024 at the latest, unless extended).

Although this step reflects a positive development in advancing towards the sale of the assets, Mithra reiterates that, as it stands, the aggregate amount of the offer (together with other offers received that relate to assets outside the contemplated perimeter of Gedeon Richter’s offer) is insufficient to ensure full repayment of all creditors of Mithra and that it will, therefore, not create value for the shareholders of Mithra. Mithra remains committed to negotiating with prospective buyers to enhance value, acting in the best interest of all stakeholders (see also press release of 29 April 2024 in this respect).

The trading of Mithra shares on Euronext Brussels remains suspended pending the on-going negotiations.

In addition, Mithra’s senior secured lenders have agreed to provide Mithra with continued funding through the previously announced uncommitted “accordion facility”, for an amount of EUR 2.5 million. This additional funding creates expected cash runway to fund the business through mid-May, allowing additional time to finalize negotiations in the context of the monetization process. Mithra is currently also in the process of finalizing the draw-down of the remaining EUR 2.5 million under the aforementioned accordion facility, allowing to extend the period during which the negotiations can be finalized until the end of May.

 

Background Information:

On 5 March 2024, Mithra announced the launch of a comprehensive monetization process, exploring potential sales of selected assets, notably Estetra SRL, and potentially the entire business. Additionally, Mithra announced the entry into a secured bridge loan facility (“the Facility”) for an amount of up to EUR 13.5 million to be drawn in multiple tranches upon the satisfaction of certain milestones, as well as an uncommitted EUR 5 million “accordion” facility (which could be used once the committed amount has been fully drawn and only if the lenders consent). The lenders under the Facility consist of funds managed by Highbridge Capital Management, LLC and funds managed by Whitebox Advisors, LLC.

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