Mesoblast shares lift following $76m convertible note agreements
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The news: Mesoblast was among the biggest gainers on the ASX 200 after the biotech company announced it had entered convertible note subscription agreements with SurgCenter and other shareholders.
The numbers: At 11:50am AEST shares in Mesoblast had lifted 4.6% to $2.03.
Subject to shareholder approval at the next annual general meeting, Mesoblast can issue unsecured convertible notes up to USD50 million ($76.5 million) in tranches of USD10 million to investors. The maturity date of the convertible notes will be five years after first issuance of notes.
The conversion price is USD16.25 per American Depositary Reciept, which Mesoblast said is equivalent to about $2.50 per ASX-listed share. This is 126% of the last close price on the Nasdaq and a 29% premium to the last close price on the ASX.
The context: Mesoblast told the exchange on Thursday it had entered the agreements with principals at US outpatient surgical center SurgCenter as well as other existing shareholders Gregory George and William Gueck.
On 29 August, Mesoblast reported a larger-than-expected net loss after tax for FY25 amid costs associated with commercial team build and product launch and fair value remeasurements.
What they said: “We appreciate the ongoing support from our major shareholders in ensuring that the Company can optimise its capital structure and support our ongoing pipeline growth opportunities,” Mesoblast chief executive Silviu Itescu said.
The source: ASX
