Last Friday Paion revealed it signed a loan agreement with the European Investment Bank for up to €20m. The unsecured loan may be drawn down within the next two years in three tranches that are subject to certain conditions, such as the achievement of operational milestones.
The company plans to draw the first tranche up to €5m within six months. Each tranche has a term of five years and will be repaid starting from the beginning of the fourth year after drawdown. The loan’s interest rate corresponds to market rate for risky debt financing of innovative companies, i.e. venture debt. The interest consists of cash-, deferred interest-, and performance-related components.
Paion highlights it will use the funds to finance its EU Phase III program, including filing for market approval of remimazolam in general anesthesia, as well as further development of remimazolam in Europe.