Mereo BioPharma Group has finished £10 million tranche of the credit loan set up in August 2017 with Silicon Valley Bank and Kreos Capital.
The company is positive with its existing cash position. It said that together with the drawdown of the remainder of its credit, Mereo has a strong balance sheet with sufficient cash resources to fund its key clinical programmes.
In connection with the drawdown, on December 29, 2017 the Company issued warrants giving the lenders the right to subscribe for 333,334 shares at a price of 330 pence per share, currently equivalent to approximately 0.5% of the issued share capital of the Company. These warrants will be capable of exercise until August 21, 2027.