SpePharm Receives Financing from Canadian Paladin

SpePharm Holding B.V., a Amsterdam, The Netherlands-based pharmaceutical company focused on acquiring, registering and marketing high medical value specialty medicines throughout Europe, has received a a strategic investment from Canadian Paladin Labs Inc. (TSX:PLB).

Under the deal, Paladin, a Montreal-based pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets, will invest €4m in SpePharm through a secured convertible debenture.
Under the financing terms of this new partnership, conversion of Paladin’s interest-bearing debt into equity would provide Paladin with an approximate 10% ownership interest in SpePharm.
Paladin also secured a right of first discussion for all future debt funding during the term of the secured convertible debenture.
In addition, the relationship establishes significant future strategic collaboration and value potential for both parties. As an immediate first step, in furtherance of Paladin’s interest in expanding its geographic footprint and portfolio of products, it will be granted an exclusive license to Savene®, an approved treatment for anthracycline extravastion, for South Africa and Israel.
As a second step, SpePharm and Paladin grant each other reciprocal rights in their respective geographies that flow from any future product acquisitions or licensing transactions.
Paladin will also be entitled to place a representative on SpePharm’s supervisory board.

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