8th Oct 2026 07:51
(Alliance News) - Faron Pharmaceuticals Oy last Wednesday said it had agreed to defer a bond repayment, providing the company with "additional flexibility" as it focuses on developing key asset bexmarilimab.
The Turku, Finland-based cancer drug developer explained that it had reached a mutual agreement with Heights Capital Management Inc to delay amortisation payments on bonds, which had been scheduled for October 2.
Back in April 2025, Faron entered a convertible bond arrangement with an HCM-managed vehicle for up to EUR35 million. Faron resolved to issue two tranches of convertible bonds, for aggregate principal amounts of EUR15 million and EUR10 million respectively.
For the first tranche, deferred amortisation is EUR840,000, now due on April 2, 2028, and for the second, EUR560,000, now due on December 2, 2028, totalling EUR1.4 million.
HCM and Faron have also agreed to defer interest payments of EUR63,000 related to the first tranche and EUR98,000 to the second. Originally due on October 2, the interest is now due on December 2, with no further interest to be accrued on the deferred interest.
"We appreciate the continued support of Heights Capital Management and value our long-term partnership. This mutually agreed deferral limits near-term dilution for our shareholders and gives us additional flexibility as we continue to advance bexmarilimab. All other terms of the bonds remain unchanged," noted Faron's Chief Financial Officer Jurriaan Dekkers.
Faron shares closed 1.4% higher at 37.00 pence each on Wednesday in London.
By Holly Munks, Alliance News reporter
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