TIDMIMM
RNS Number : 2838N
Immupharma PLC
29 September 2021
RNS: RELEASE | 29 SEPTEMBER 2021
ImmuPharma PLC
("ImmuPharma" or the "Company")
INTERIM RESULTS ANNOUNCEMENT
for the six months ended 30 June 2021
ImmuPharma PLC (LSE:IMM) , (Euronext Growth Brussels: ALIMM)
("ImmuPharma" or the "Company"), the specialist drug discovery and
development company, is pleased to announce its interim results for
the six months ended 30 June 2021 (the "Period").
Key Highlights (including post Period review)
Financials
-- Financial performance in line with expectations over the Period
o Cash balance of GBP4.2m as at 30 June 2021 (31 December 2020:
GBP5.9m)
o Loss for the period of GBP3.7m (30 June 2020: GBP3m)
o Research and development expenses of GBP1.3m (30 June 2020:
GBP0.9m)
o Administrative expenses of GBP1.5m (30 June 2020: GBP1m)
o Derivative financial asset of GBP0.2m as at 30 June 2021 (31
December 2020: GBP1.2m)
o Incanthera financial asset of GBP1.2m (GBP1.8m at 31 December
2020) and warrants financial asset of GBP0.2m (GBP0.6m at 31
December 2020)
o Convertible loan notes of GBP0.7m (GBP0.6m at 31 December
2020)
o Share based expense of GBP0.3m (30 June 2020: GBP1m)
o Basic and diluted loss per share of 1.46p (30 June 2020:
1.69p)
'Autoimmunity': P140
o Lupuzor(TM) (P140) - now entering a pharmacokinetic ("PK")
study prior to the optimized Phase 3 study in lupus in conjunction
with its licensing partner, Avion Pharmaceuticals.
o P140 for Chronic Inflammatory Demyelinating Polyneuropathy
("CIDP") a neurological disorder targeting the body's nerves.
Active preparation for a phase 2/3 clinical study has now been
initiated.
o Potential further clinical applications based on further
preclinical investigation include asthma, Sjogrens syndrome, renal
inflammation in diabetes and periodontitis.
'Anti-infection'
o BioAMB, a novel peptide-based drug that offers a potential
improvement on the limiting side effects of current Amphotericin-B
("AMB") formulations. AMB is one of a last line of agents against
serious and life-threatening fungal infections caused by the
aspergillus family of fungi.
o BioCin, a novel peptide-based drug based on an existing potent
antibacterial used in high medical need cases. BioCin has the
potential to offer improved safety and/or administration
benefits.
Board changes
-- New Board established:
o Tim McCarthy appointed as Chief Executive Officer ("CEO")
o Dr Tim Franklin appointed as Chief Operating Officer
("COO").
o Non Executive Directors ("NED") appointed - Dr Sanjeev Pandya
& Lisa Baderoon.
Commenting on the statement and outlook Tim McCarthy, Chairman
& CEO, said :
"The last few months have seen significant changes in the
leadership of the Company. This has been echoed in the Corporate
Update, which we announced today, reflecting the positive steps
being taken, to move ImmuPharma forward. We have created positive
and constructive changes within the business, with a focus on
delivery of product development, value added milestones and a much
more commercially focussed corporate strategy. The new Board,
together with the excellent team supporting us, are determined to
progress the development and commercialisation of all the key
assets in our portfolio and to build shareholder value.
In closing, the Board would like to take this opportunity to
thank its shareholders for their continued patience and support, as
well as its staff, corporate and scientific advisers and our
partners including, CNRS and Avion"
Market Abuse Regulation (MAR) Disclosure
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For further information please contact:
ImmuPharma PLC (www.immupharma.com) + 44 (0) 207 152 4080
Tim McCarthy, Chairman & CEO
Lisa Baderoon, Head of Investor Relations & NED + 44 (0) 7721 413496
SPARK Advisory Partners Limited (NOMAD)
Neil Baldwin
Stanford Capital Partners (Joint Broker)
Patrick Claridge, John Howes +44 (0) 203 36 8 8974
SI Capital (Joint Broker) +44 (0) 203 815 8880
Nick Emerson +44 (0) 1483 413500
4Reliance (Euronext Growth Listing Sponsor)
Jean-Charles Snoy
Degroof Petercam (Liquidity Provider)
Erik De Clippel +32 (0) 2 747 02 60
Backstage Communication +32 (0) 2 287 95 34
Olivier Duquaine +32 (0) 477 504 784
Gunther De Backer +32 (0) 475 903 909
A copy of the interim report is available on the Company's
website www.immupharma.com and from the Company Secretary at
registered address.
ImmuPharma plc
Chairman's Statement
INTERIM HIGHLIGHTS
The first half of 2021, up to the current date, has seen a
number of key developments for ImmuPharma, including further
progress within our flagship Lupuzor(TM) program in Lupus and
changes in the Board of Directors.
Lupuzor(TM) - Opportunity and next steps
There are an estimated five million people globally suffering
from lupus, with approximately 1.5 million patients in the US,
Europe and Japan (Source: Lupus Foundation of America). Current
'standard of care' treatments, including steroids and
immunosuppressants, can potentially have either serious side
effects for patients or limited efficacy, with over 60 per cent of
patients not adequately treated.
ImmuPharma believes Lupuzor(TM) has the potential to be a novel
specific drug therapy for the treatment of Lupus by specifically
modulating the immune system and halting disease progression in a
substantial proportion of patients.
Lupuzor(TM) has a unique mechanism of action that modulates the
activity of CD4 T-cells which are involved in the cell-mediated
immune response which leads to the lupus disease. Lupuzor(TM),
taken over the long term, as indicated in earlier stage clinical
trials, has the potential to prevent the progression of lupus
rather than just treating its symptoms, with the rest of the immune
system retaining the ability to work normally.
The Board is confident that there are a number of routes to
market for Lupuzor(TM), including corporate collaborations. Such a
collaboration was successfully completed at the end of November
2019, resulting in a signed exclusive Trademark, License and
Development Agreement with Avion Pharmaceuticals LLC ("Avion") in
the US. Positive discussions with a number of potential commercial
partners for Lupuzor(TM) in key territories outside of the US are
continuing.
Lupuzor(TM) and Avion Pharmaceuticals
On 28 November 2019, ImmuPharma and Avion Pharmaceuticals
("Avion") signed an exclusive Trademark, License and Development
Agreement for Lupuzor(TM), with Avion agreeing to fund a new
international Phase 3 trial and commercialising Lupuzor(TM) in the
US. Since then, both companies have been working closely on the
clinical trial design and strategy, bolstered by consultation with
an eminent group of key opinion leaders. This tripartite Phase 3
protocol development approach provided thorough and detailed
support for developing the most relevant clinical trial for
Lupuzor(TM) in systemic lupus erythematosus ("SLE") patients. Data
and results from the first Phase 3 clinical study were analysed and
considered in detail and, as a result, a new optimised
international Phase 3 study protocol has been finalised and
approved on the 22 July 2021 by the US Food and Drug Administration
("FDA") (subject to prior successful completion of PK study).
In the first half of 2021 ImmuPharma provided progress updates
to the market in respect to guidance meetings between the FDA and
Avion.
As part of this feedback and as announced on 9 February 2021,
the FDA requested that Avion and ImmuPharma develop and validate a
bioanalytical assay in order to confirm the unique pharmacokinetic
("PK") profile of Lupuzor(TM).
On 24 June 2021 it was announced that following submission by
Avion of the PK methodology study, the FDA would, by written
response, approve the PK study around the end of July 2021.
On 12 August 2021 ImmuPharma announced that the FDA had approved
the commencement of the PK study.
The PK study is a Phase 1 study to assess the presence of
Lupuzor(TM) in the body after administration of a single dose. The
study will be carried out in a total of up to 24 healthy male
volunteers. Dependent on timing of patient recruitment, we
anticipate that the PK study will take between 8-12 weeks to
complete, from commencement.
Preparations will be made to commence the Phase 3 study,
following completion of the PK study. For the continued late-stage
program development, ImmuPharma and Avion, as part of a joint
steering committee, agreed on a collaborative group consisting of a
Board of Key Opinion Leaders ("KOLs") and a leading medical patient
advocacy group. Collectively, this network, due to its in-depth
knowledge of the lupus disease and their access to lupus patient
groups, will be invaluable to the successful outcome of the Phase 3
trial, which is being fully funded by Avion, estimated to be around
$25 million investment.
ImmuPharma will provide an update on the progress of the PK
study once it has commenced.
Pipeline Overview
Most recently, the Board completed a full review of the R&D
activities across the Group which resulted in the Board having the
following conclusions:
There is a depth of scientific knowledge and innovation within
the R&D team in Bordeaux and with the new scientific leadership
we expect there to be a significant improvement in productivity and
achievement of product development targets in the future. There is
a need for a focus on those product developments (see below) which
offer the highest probability of both scientific and commercial
success. Management will concentrate more of their time on
identifying and concluding commercial collaborations and licensing
deals across the product portfolio.
Having assessed our current portfolio and resources, the focus
will now be on Autoimmunity and Anti-infection and those product
developments which offer near-term and commercially viable
opportunities:
Autoimmunity
The increasing knowledge of P140's mode of action and its
relevance to many autoimmune and inflammatory conditions provides a
depth of disease states for ImmuPharma and its partners to explore
in the near future. The therapeutic potential of P140 goes beyond
just lupus, with Chronic Inflammatory Demyelinating Polyneuropathy
("CIDP") being the next step. This expanding insight is
fundamentally driven by the excellent research partnership between
the Company and Prof. Sylviane Muller, inventor of P140 and
director of CNRS, France.
o Lupuzor(TM) (P140) - now entering a PK study prior to the
optimized Phase 3 study in lupus.
o P140 for CIDP a neurological disorder targeting the body's
nerves. Active preparation for a phase 2/3 clinical study has now
been initiated.
o Further clinical applications based on further preclinical
investigation include asthma, Sjogrens syndrome, renal inflammation
in diabetes and periodontitis.
Anti-Infection
The innovative peptide technology at ImmuPharma Biotech has been
a huge success and very recently has given rise to a number of
novel development programs, out of which we have identified two
core programs, in pre-clinical development; BioAMB and BioCin,
which we believe have the best commercial opportunity and speed to
market.
o BioAMB, a novel peptide-based drug that offers a potential
improvement on the limiting side effects of current Amphotericin-B
("AMB") formulations. AMB is one of a last line of agents against
serious and life-threatening fungal infections caused by the
aspergillus family of fungi.
o BioCin, a novel peptide-based drug based on an existing potent
antibacterial used in high medical need cases. BioCin has the
potential to offer improved safety and/or administration
benefits
Board Changes
In 2021 to date, the Company announced a number of key Board
changes. In June 2021, Dr Robert Zimmer, co-founder of ImmuPharma
and Chief Science Officer, retired to pursue other endeavours after
16 years of service. As a substantial shareholder in ImmuPharma and
to demonstrate his continued support of the Company, Dr Zimmer
entered into a lock-in agreement, to not dispose of shares in which
he has an interest, for a period of three years or, if earlier than
three years, the date of the reporting by the Company of the
preliminary results of the next Phase 3 clinical trial of
Lupuzor(TM).
On 16 July 2021, Dr Tim Franklin, Chief Operating Officer, was
appointed to the Board of Directors. Tim has worked for ImmuPharma
for over three years, initially as a consultant and more recently
appointed as Chief Operating Officer in November 2020. His key
responsibilities include working closely with ImmuPharma's product
development team and scientific advisors, in addition to exploring
business development opportunities with potential partners. These
activities aim to progress the Company's drug development
portfolio, both through in house development and partnering
opportunities.
On 30 July 2021, as part of a Board Changes announcement, it was
confirmed that Dimitri Dimitriou, co-founder and CEO of ImmuPharma,
for over 16 years, had decided to step down from his position, in
order to pursue a number of other external opportunities. Tim
McCarthy, Chairman, has been appointed as CEO. The Company has
initiated a process to identify a suitable person to take over as
Non-Executive Chair of the Company and during this interim period
Tim McCarthy will continue as Chairman.
Further, Dr Franco di Muzio, Senior NED and Dr Stéphane Méry,
NED stepped down from the Board, following 14 and 6 years in these
roles respectively.
In the same announcement, Dr Sanjeev Pandya was appointed as
Senior Independent NED. In addition, Lisa Baderoon has been
appointed to the Board as NED.
Interest in Incanthera Plc
ImmuPharma has a 13.37% interest in Oncology specialist,
Incanthera plc, which trades on Aquis Stock Exchange ("AQSE") under
the ticker (TIDM:INC).
ImmuPharma also has 7,272,740 warrants options in Incanthera at
an exercise price of 9.5p pence, being the price at which new
shares have been issued in the Placing accompanying Incanthera's
listing.
As a major shareholder, ImmuPharma remains supportive of
Incanthera.
Financial Review
ImmuPharma's cash balance at 30 June 2021 was GBP4.2 million
(GBP5.9 million at 31 December 2020, GBP2.7 million at 30 June
2020). Financial asset related to investment in Incanthera plc
amounted to GBP1.2 million (GBP1.8 million at 31 December 2020,
GBP1.2 million at 30 June 2020) and warrants granted has resulted
in amount of GBP0.2 million (GBP0.6 million at 31 December 2020 and
GBP0.5 million at 30 June 2020), recognized under financial asset.
As a result of the Lanstead Sharing Agreements, the Company had a
derivative financial asset of GBP0.2 million at 30 June 2021
(GBP1.2 million at 31 December 2020, GBP2.5 million at 30 June
2020). The convertible loans liability amounted to GBP0.7 million
(GBP0.6 million at 31 December 2020, GBP1.8 million at 30 June
2020). Trade and other payables liability amounted to GBP1.1
million at 30 June 2021 (GBP0.6 million at 31 December 2020, GBP0.2
million at 30 June 2020). The increase was mainly caused by
Directors and Related Party departures. Basic and diluted loss per
share were 1.46p and 1.46p respectively (30 June 2020: 1.69p and
1.69p). In line with the Company's current policy, no interim
dividend is proposed.
Operating loss for the Period was GBP3.1 million (GBP2.9 million
for the six months ended 30 June 2020). Research and development
expenditure in the Period was GBP1.3 million (GBP0.9 million for
the six months ended 30 June 2020). Administrative expenses were
GBP1.5 million during the Period (GBP1.0 million for the six months
ended 30 June 2020), with the increase being largely due to
departure costs regarding Directors and Related Parties in the
period, which were settled post period-end. The share based expense
was GBP0.3 million (GBP1.0 million for the six months ended 30 June
2020). Finance costs for the Period were GBP0.9 million (GBP0.4
million for the six months ended 30 June 2020). This arose largely
due to the calculation of fair value of the derivative financial
asset - "Lanstead Sharing Agreements", which resulted in a finance
loss of GBP0.8 million. Finance income for the Period was GBP0.1
million (GBP0.1 million for the six months ended 30 June 2020). It
primarily arose due to foreign exchange gain in relation to
intercompany receivables.
Given the stage of ImmuPharma's development, the fact that
losses have continued to be made is to be expected since there is
minimal revenue and business activity is concerned with significant
investment in the form of clinical development expenditure, in
addition to maintaining the infrastructure of the Company.
Current Activities and Outlook
The last few months have seen significant changes in the
leadership of the Company. We have created positive and
constructive changes within the business, with a focus on delivery
of product development, value added milestones and a much more
commercially focussed corporate strategy. The new Board, together
with the excellent team supporting us, are determined to progress
the development and commercialisation of all the key assets in our
portfolio and to build shareholder value.
In closing, the Board would like to take this opportunity to
thank its shareholders, new and longstanding, for their patience
and support as well as its staff, corporate and scientific advisers
and our partners including, CNRS and Avion.
Tim McCarthy
Non-Executive Chairman & CEO
ImmuPharma plc
CONSOLIDATED INCOME STATEMENT
FOR THE PERIODED 30 JUNE 2021
Note Unaudited Audited Unaudited
6 months Year ended 6 months
ended 31 December ended
30 June 2020 30 June
2021 2020
GBP GBP GBP
Continuing operations
Revenue 23,531 126,667 62,207
Research and development
expenses (1,319,875) (2,372,834) (924,263)
Administrative expenses (1,495,308) (1,764,897) (1,042,345)
Share based expense (288,826) (1,578,368) (953,034)
Operating loss (3,080,478) (5,589,432) (2,857,435)
Finance costs 4 (904,549) (1,697,832) (391,671)
Finance income 95,225 41,089 142,342
Loss before taxation (3,889,802) (7,246,175) (3,106,764)
Tax 229,919 386,248 147,423
Loss for the period (3,659,883) (6,859,927) (2,959,341)
Attributable to:
Equity holders of the parent
company (3,659,883) (6,859,927) (2,959,341)
Loss per ordinary share
Basic and diluted 2 (1.46)p (3.43)p (1.69)p
ImmuPharma plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODED 30 JUNE 2021
Unaudited Audited Unaudited
6 months Year 6 months
ended ended 31 ended
30 June December 30 June
2021 2020 2020
GBP GBP GBP
Loss for the financial period (3,659,883) (6,859,927) (2,959,341)
Other comprehensive income
Items that will not be reclassified
subsequently to profit or loss:
Fair value (loss)/gain on investment (555,633) 851,772 472,728
Fair value (loss)/gain on warrants (395,640) 625,576 481,357
Total items that will not be
reclassified subsequently to
profit or loss (951,273) 1,477,348 954,085
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations (20,357) 42,207 91,651
Total items that may be reclassified
subsequently to profit or loss (20,357) 42,207 91,651
Other comprehensive (loss)/income
for the period (971,630) 1,519,555 1,045,736
Total comprehensive loss for
the period (4,631,513) (5,340,372) (1,913,605)
ImmuPharma plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Note Unaudited Audited Unaudited
6 months Year 6 months
ended ended 31 ended
30 June December 30 June
2021 2020 2020
GBP GBP GBP
Non-current assets
Intangible assets 495,736 484,042 502,062
Property, plant and equipment 369,700 411,606 276,302
Financial asset 1,466,985 2,418,258 1,645,483
Derivative financial asset 4 - 174,488 760,011
Total non-current assets 2,332,421 3,488,394 3,183,858
Current assets
Trade and other receivables 129,850 161,998 162,125
Cash and cash equivalents 4,248,412 5,862,057 2,713,903
Current tax asset 211,180 386,590 147,882
Derivative financial asset 4 160,436 1,016,635 1,774,001
Total current assets 4,749,878 7,427,280 4,797,911
Current liabilities
Financial liabilities -
borrowings (914) (6,939) (30,376)
Trade and other payables (1,113,465) (619,037) (237,541)
Convertible loans (655,811) (634,902) (236,647)
Total current liabilities (1,770,190) (1,260,878) (504,564)
Net current assets 2,979,688 6,166,402 4,293,347
Non-current liabilities
Convertible loans 5 - - (1,598,795)
Net assets 5,312,109 9,654,796 5,878,410
EQUITY
Ordinary shares 25,022,130 25,022,130 18,301,093
Share premium 27,237,329 27,237,329 27,122,305
Merger reserve 106,148 106,148 106,148
Other reserves 3,524,005 3,255,536 2,544,800
Retained earnings (50,577,503) (45,966,347) (42,195,936)
Total equity 5,312,109 9,654,796 5,878,410
ImmuPharma plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 30 JUNE 2021
Other Other
Other Other reserves reserves
reserves reserves -Equity -
Merger - - shares Convertible Retained
Share Share reserve Acquisition Translation to be option Earnings Total
capital premium reserve Reserve issued reserve equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2020 16,736,093 27,187,316 106,148 (3,541,203) (1,350,687) 6,322,227 - (40,190,680) 5,269,214
Loss for the
financial
period - - - - - - - (2,959,341) (2,959,341)
Exchange
differences
on
translation
of foreign
operations - - - - 91,651 - - - 91,651
Share based
payments - - - - - 953,034 - - 953,034
New issues of
equity
capital 1,565,000 - - - - - - - 1,565,000
Cost of new
issue of
equity
capital - (65,011) - - - - - - (65,011)
Equity
component of
convertible
loan notes - - - - - - 69,778 - 69,778
Fair value
gain on
investments - - - - - - - 472,728 472,728
Fair value
gain on
warrants - - - - - - - 481,357 481,357
------------ ------------ ---------- -------------- --------------------- ----------- -------------- -------------- ------------------------------
At 30 June
2020 18,301,093 27,122,305 106,148 (3,541,203) (1,259,036) 7,275,261 69,778 (42,195,936) 5,878,410
============ ============ ========== ============== ===================== =========== ============== ============== ==============================
At 1 January
2020 16,736,093 27,187,316 106,148 (3,541,203) (1,350,687) 6,322,227 - (40,190,680) 5,269,214
Loss for the
financial
year - - - - - - - (6,859,927) (6,859,927)
Exchange
differences
on
translation
of foreign
operations - - - - 42,207 - - - 42,207
Share based
payments - - - - - 1,751,369 - - 1,751,369
Equity
component of
convertible
loan notes 31,623 - 31,623
New issue of
equity
capital 8,286,037 665,281 - - - - - - 8,951,318
Cost of new
issue of
equity
capital - (615,268) - - - - - (393,088) (1,008,356)
Fair value
gain o n
investments - - - - - - - 851,772 851,772
Fair value
gain on
share
warrants - - - - - - - 625,576 625,576
------------ ------------ ---------- -------------- --------------------- ----------- -------------- -------------- ------------------------------
At 31
December
2020
& 1 January
2021 25,022,130 27,237,329 106,148 (3,541,203) (1,308,480) 8,073,596 31,623 (45,966,347) 9,654,796
============ ============ ========== ============== ===================== =========== ============== ============== ==============================
Loss for the
financial
period - - - - - - - (3,659,883) (3,659,883)
Exchange
differences
on
translation
of foreign
operations - - - - (20,357) - - - (20,357)
Share based
payments - - - - - 288,826 - - 288,826
Fair value
loss on
investments - - - - - - - (555,633) (555,633)
Fair value
loss on
warrants - - - - - - - (395,640) (395,640)
------------ ------------ ---------- -------------- --------------------- ----------- -------------- -------------- ------------------------------
At 30 June
2021 25,022,130 27,237,329 106,148 (3,541,203) (1,328,837) 8,362,422 31,623 (50,577,503) 5,312,109
============ ============ ========== ============== ===================== =========== ============== ============== ==============================
Attributable
to:-
Equity
holders of
the
parent
company 25,022,130 27,237,329 106,148 (3,541,203) (1,328,837) 8,362,422 31,623 (50,577,503) 5,312,109
============ ============ ========== ============== ===================== =========== ============== ============== ==============================
ImmuPharma plc
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE PERIODED 30 JUNE 2021
Note Unaudited Audited Unaudited
6 months Year 6 months
ended ended 31 ended
30 June December 30 June
2021 2020 2020
GBP GBP GBP
Cash flows from operating
activities
Cash used in operations 3 (2,068,937) (3,879,936) (2,095,047)
Tax received 390,418 606,157 640,198
Interest paid (1,444) (55,622) (1,373)
Net cash used in operating
activities (1,679,963) (3,329,401) (1,456,222)
Investing activities
Purchase of property,
plant and equipment (48,014) (360,290) (83,239)
Purchase of intangibles (4,756) - -
Interest received 215 41,089 100,825
Purchase of investments - (250,000) -
Net cash (used in)/generated
from investing activities (52,555) (569,201) 17,586
Financing activities
Decrease in bank overdraft 5 (184) (212)
New loans/(loan repayments) (5,751) (21,256) 1,942
Settlements from Sharing
Agreement 261,116 1,292,393 655,065
Gross proceeds from issue
of new share capital - 8,000,000 1,500,000
Share capital issue costs - (702,133) -
Funds deferred per Sharing
Agreement - (1,300,000) (1,300,000)
Gross proceeds from issue
of convertible loan notes - 2,152,252 1,905,220
Convertible loan notes issue - (235,552) -
costs
Convertible loan notes repaid - (815,166) -
Net cash generated from/(used
in) financing activities 255,370 8,370,354 2,762,015
Net increase/(decrease) in
cash and cash equivalents (1,477,148) 4,471,752 1,323,379
Cash and cash equivalents
at start of period 5,862,057 1,364,840 1,364,840
Effects of exchange rates
on cash and
cash equivalents (136,497) 25,465 25,684
Cash and cash equivalents
at end of period 4,248,412 5,862,057 2,713,903
ImmuPharma plc
NOTES TO THE CONSOLIDATED INTERIM ACCOUNTS FOR THE PERIODED 30
JUNE 2021
1 ACCOUNTING POLICIES
Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as adopted
by the United Kingdom. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
(IASB) and the IFRS Interpretations Committee and there is an
ongoing process of review and endorsement by the UK Endorsement
Board. The financial information has been prepared on the basis of
IFRS expected to be adopted by the United Kingdom and applicable as
at 31 December 2021. The Group has chosen not to adopt IAS 34
"Interim Financial Statements" in preparing the interim financial
information.
The accounting policies applied are consistent with those that
were applied to the financial statements for the year ended 31
December 2020.
Non-Statutory accounts
The financial information set out in this interim report does
not constitute the Group's statutory accounts, within the meaning
of Section 434 of the Companies Act 2006. The statutory accounts
for the year ended 31 December 2020 have been filed with Registrar
of Companies. The auditors reported on those accounts; their report
was unqualified, did not contain a statement under either Section
498 (2) or Section 498 (3) of the Companies Act 2006 but did
include emphasis of matter paragraphs relating to the carrying
value of Parent Company's investment in subsidiaries and
receivables due from group undertakings. The financial information
for the 6 months ended 30 June 2021 and 30 June 2020 is
unaudited.
Copies of this statement will be available on the Company's
website - www.immupharma.com.
ImmuPharma plc
NOTES TO THE CONSOLIDATED INTERIM ACCOUNTS FOR THE PERIODED 30
JUNE 2021
(Continued)
2 LOSS PER SHARE
Unaudited Audited Unaudited
6 months Year 6 months
ended ended 31 ended
30 June December 30 June
2021 2020 2020
GBP GBP GBP
Loss
Loss for the purposes of basic
and diluted loss per share
being net loss attributable
to equity shareholders (3,659,883) (6,859,927) (2,272,823)
Number of shares
Weighted average number of
ordinary shares for the purposes
of basic loss per share 250,221,297 200,176,156 174,969,760
Basic loss per share (1.46)p (3.43)p (1.69)p
Diluted loss per share (1.46)p (3.43)p (1.69)p
There is no difference between basic loss per share and diluted
loss per share as the share options and warrants are
anti-dilutive.
ImmuPharma plc
NOTES TO THE CONSOLIDATED INTERIM ACCOUNTS FOR THE PERIODED 30
JUNE 2021
(Continued)
3 CASH USED IN OPERATIONS
Unaudited Audited Unaudited
6 months Year 6 months
ended ended 31 ended
30 June December 30 June
2021 2020 2020
GBP GBP GBP
Operating loss (3,080,478) (5,589,432) (2,857,435)
Depreciation & amortisation 86,639 170,954 43,903
Share based payments 288,826 1,578,368 953,034
Decrease/(increase) in trade
& other receivables 29,964 (8,380) (8,516)
Increase/(decrease) in trade
& other payables 511,100 113,926 (267,550)
Gain/(loss) on foreign
exchange 95,012 (145,372) 41,517
Cash used in operations (2,068,937) (3,897,936) (2,095,047)
ImmuPharma plc
NOTES TO THE CONSOLIDATED INTERIM ACCOUNTS FOR THE PERIODED 30
JUNE 2021
(Continued)
4 Derivative Financial Asset
As part of the placement completed in June 2019, the Company
issued 26,565,200 new ordinary shares to Lanstead Capital
Investors L.P. ("Lanstead") at a price of 10p per share
for an aggregate subscription price of GBP2.66 million before
expenses. In an additional placement completed in March
2020, the Company issued 13,000,000 new ordinary shares
to Lanstead at a price of 10p per share for an aggregate
subscription price of GBP1.3 million before expenses. The
Subscription proceeds were pledged under a Sharing Agreement
under which Lanstead made and will continue to make, subject
to the terms and conditions of that Sharing Agreement, monthly
settlements to the Company that are subject to adjustment
upwards or downwards depending on the Company's share price
performance.
The Company also issued, in aggregate, a further 1,328,290
new ordinary shares in July 2019 and 650,000 new ordinary
shares in March 2020 to Lanstead as value payments in connection
with the Subscription and the Sharing Agreement. Monthly
settlements under the Sharing Agreement will continue in
2021 and 2022, completing in September 2021 and June 2022
respectively.
At the end of the accounting period the amount receivable
has been adjusted to fair value based upon the share price
of the Company at that date. Any change in the fair value
of the derivative financial asset is reflected in the income
statement. As at 30 June 2021, the Company completed a calculation
of fair value of the derivative financial asset that resulted
in a finance loss of GBP769,570 which was recorded in the
income statement. The restatement to fair value will be
calculated at the end of each accounting period during the
course of the Sharing Agreement and will vary according
to the Company's share price performance.
5 Convertible Loan Notes
On 10 June 2020, the Company issued GBP2.4m/$3.0m (face value)
convertible loan notes. The proceeds received equated to
GBP2.2m/$2.7m (before expenses of GBP0.2m/$0.3m).
The value of liability component and the equity conversion
component were determined at the date the instrument was issued.
The fair value of the liability was calculated at the rate of
interest for similar debt without the conversion option of
19.90%.
On initial recognition the value of the equity amounted to
GBP56k and the liability amounted to GBP1,835k. At the period end
the liability had a fair value of GBP656k.
The summary of the key terms of the loan notes is as
follows.
Term 18 months
Conversion price 17.96p, which is equivalent to
120% of the Volume Weighted Average
Price ("VWAP") of the ordinary
shares for 09 June 2020.
On 2 September 2020, (as the
result of additional placing)
the conversion price has been
adjusted downwards to 11p.
---------------------------------------
Conversion by the Company During the maturity period, if
the VWAP on each of at least
20 consecutive trading days shall
be equal to or have exceeded
35.92p (200% of the Conversion
Price).
---------------------------------------
Conversion by the Investors At any time during the maturity
period.
---------------------------------------
Security All amounts failing due under
the Convertible Loan Notes will
be secured by debenture constituting
a first-ranking fixed and floating
charge over all the assets of
the Company (the "Debenture").
---------------------------------------
Coupon & Payment 10% per annum, payable quarterly
in arrears.
---------------------------------------
Redemption The Convertible Loan Notes can
be redeemed:
-in the event of additional funds
receipt by the
Company, Investors have rights
to repurchase any
unconverted securities to the
value of up to 25% of the gross
proceeds of financing, at 105%
of face value;
-upon Nasdaq listing ImmuPharma
can offer to redeem all or part
of the unsecured convertible
notes at 105% of face value plus
accrued interest;
-otherwise, automatically at
the end of the term.
---------------------------------------
Unaudited Audited Unaudited
6 months Year 6 months
ended ended 31 ended
30 June December 30 June
2021 2020 2020
GBP GBP GBP
Balance brought 634,902 - -
forward
Value of loan at
inception - 2,153,824 2,153,824
Issue costs - (232,263) (232,263)
Equity component - (31,623) (69,778)
Value of shares converted - (799,846) -
Repurchased to date - (815,166) -
Exchange differences (63,383) (44,500) (16,341)
Interest expense 84,292 199,190 -
(Gain)/Loss on revaluation - 205,286 -
Balance carried forward 655,811 634,902 1,835,442
6 Subsequent events
On 16 July 2021, Dr Tim Franklin, Chief Operating Officer, was
appointed to the Board of Directors.
On 29 July 2021, Dimitri Dimitriou, co-founder and CEO of
ImmuPharma, for over 16 years, had decided to step down from his
position. Tim McCarthy, Chairman, has been appointed as CEO.
On 29 July 2021, Dr Franco di Muzio, Senior NED and Dr Stéphane
Méry, NED stepped down from the Board, following 14 and 6 years in
these roles respectively.
On the same day, Dr Sanjeev Pandya was appointed as Senior
Independent NED. In addition, Lisa Baderoon has been appointed to
the Board as NED.
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END
IR FLFFRAEITFIL
(END) Dow Jones Newswires
September 29, 2021 02:29 ET (06:29 GMT)
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