Pentixapharm Holding AG Announces Extension of Convertible Bond Terms with Eckert & Ziegler to 2030

Pentixapharm Holding AG Extends Convertible Bond Agreement with Eckert & Ziegler SE

Pentixapharm Holding AG announced significant changes to its financial agreements today, particularly regarding its 4.00% Corporate Convertible Bond set to mature in 2027. The company has reached an agreement with Eckert & Ziegler SE, the sole bondholder, to amend the terms of this convertible bond, effectively extending its maturity by three years to December 31, 2030.

This move represents a strategic decision aimed at enhancing the company's financial flexibility in managing its capital. The adjusted arrangement allows Pentixapharm to expedite the repayment for bonds that have already been issued while securing additional funds until mid-2030. As part of this amendment, the repayment schedule for bonds valued at EUR 5.0 million has been deferred by three years. Meanwhile, the company will have the option to call for payment on the issuance of 27 bonds that remain unissued, which carry an aggregate principal amount of EUR 13.5 million, until June 30, 2030.

Furthermore, with the new agreement, the interest rate on the convertible bond will rise from 4.00% to 6.00% annually, starting on January 1, 2027. This increase reflects the company's commitment to align the bond's terms with its financial strategy while ensuring adequate returns for investors. The conversion rights associated with the bond will now be exercisable at any point during the newly extended term.

In a move to reinforce the bond's security, Pentixapharm has promised that it will only grant security for other bonds or capital market liabilities if the convertible bond's interests are equally secured or compensated with equivalent security. This stipulation extends to subsidiaries in which Pentixapharm holds over 85% of equity interests or voting rights, alongside other subsidiaries currently managing intellectual properties.

To align with the convertible bond's increased financial obligations, the Management and Supervisory Boards plan to propose an increase in conditional capital at the upcoming 2027 Annual General Meeting. This proposal aims to fully cover the conversion rights associated with the aggregate principal amount of the bond, ensuring that all issued bonds can be efficiently serviced through existing or potential authorized capital.

The total estimated value of this amendment agreement stands at approximately EUR 3.7 million, calculated based on the increased interest expenses tied to the convertible bond over its extended term. This figure assumes the issuance of all 37 bonds included in the original deal, reflecting the company’s strategic delay in incurring larger financial burdens while continuing to develop its core projects.

It is noteworthy that Pentixapharm treats Eckert & Ziegler as a related party in this agreement. The close relationship is established through shared leadership roles and significant equity holdings between the two firms. Dr. Andreas Eckert, serving as the Chairman of Pentixapharm’s Supervisory Board, also leads Eckert & Ziegler’s Supervisory Board. In addition, Dr. Harald Hasselmann, a member of Pentixapharm’s Supervisory Board, chairs EZAG’s Management Board. Such intertwined leadership reflects the collaborative ambitions of both organizations in the biotech landscape.

In summary, Pentixapharm Holding AG's extension of its convertible bond agreement with Eckert & Ziegler SE marks a pivotal moment for the company as it navigates the complexities of capital management while setting a clear pathway for future growth and stability in the years to come.