The new loan which is completely interest-free, together with the 3.5 percent lower interest rate on the refinanced loan, gives Enorama Pharma a stronger cash position and the opportunity to accelerate the Company's market efforts. In recent months, Enorama Pharma has received several initial orders in the fast-growing, and for the Company new, business area of non-pharmaceutical tobacco-free nicotine products. With financing secured, the Company can more quickly meet the global demand for both medical nicotine chewing gum and products for the fast-growing business area of non-pharmaceutical tobacco-free nicotine products.
Swede Unipharma AB announces that the Company has sold 729,167 shares in Enorama Pharma, at a price of 48 SEK per share, to DS Global Marketing Pte. Limited ("DS Global"), an industrial partner to the Company. The loan to Enorama Pharma is financed through the purchase price for the shares, which amounts to approximately 35 million SEK and includes repayment of Swede Unipharma's existing loan to Erik Penser Bank of 18 million SEK, as well as interest and other costs. As a condition of the transaction, DS Global has stipulated that the purchase price will be allocated to the Company in accordance with this press release. The new interest rate level of 3 percent is considered to be very favorable for Enorama Pharma, as this type of loan without collateral normally has a significantly higher interest rate.
Following the sale, Swede Unipharma holds 1,958,833 shares, corresponding to 35.4 percent of the shares and votes in the Company. Swede Unipharma will continue to be the largest owner after the transaction. The reason for the transaction is to secure financing and strengthen the cooperation with DS Global.
“DS Global is a financially strong partner with deep knowledge in production, distribution and sales. In connection with the loan, cooperation with DS Global will be extended, which will further broaden the Company's industrial network. Through its increased ownership, DS Global shows a strong interest and great confidence in Enorama Pharma's Board of Directors and management, and Swede Unipharma continues to take responsibility for the Company's forward growth. The transaction means that we more than halve the interest rate level on our loans. All in all, we get a more stable business when Enorama Pharma enters into a phase with a growing global demand for the Company's products and financial resources to increase the intensity of our market processing", says Mats Rönngard, CEO of Enorama Pharma.
“At DS Global, we are pleased to increase our strategic investment in Enorama Pharma. I know the company, its products and its technology very well from my position as a board member and I see opportunities for cooperation between us and Enorama Pharma in production, distribution and sales on a global scale”, says Bengt Jönsson, CEO of DS Global and board member of Enorama Pharma.