multiQure, an innovative project developing a breakthrough RNAi therapy for Huntington’s disease, is moving closer to going public. Biofund, the project’s principal investor, has signed a letter of intent with ACRX, currently the largest shareholder of Pure Biologics, a company listed on the Warsaw Stock Exchange (GPW), regarding the contribution in kind of the innovative RNAi platform to the Company in exchange for shares in the Company, as well as the conversion into shares of a loan granted by ACRX. These resolutions will be put to a vote at the Company’s Extraordinary General Meeting to be held on 10 June this year. Approval by the meeting will be a significant step toward bringing the project to the stock exchange. Pure Biologics is also a party to the letter of intent.
– The agreement with ACRX is a very important signal: a key shareholder wants to cooperate with us on the smooth transformation of the Company. Through the contribution of the multiQure project to Pure Biologics, Biofund intends to give existing shareholders exposure to a therapy valued by independent advisors at over PLN 400 million, and to allow new investors to join in the development of the project. The agreement demonstrates that these actions are being carried out in full agreement with the current principal shareholder, who, through the conversion of its loan into shares, will increase its involvement in the new shareholding structure – says Dr. Kris Siemionow, lead investor in the multiQure project and one of the shareholders of the Biofund fund.
Under the letter of intent, Biofund Capital Management has declared its intention to contribute the multiQure project to the Company in exchange for newly issued Series Q shares. Should the EGM decide favorably, Biofund will hold 49.99% of the Company’s shares once the issue takes effect. ACRX, in turn, intends to take up Series R shares in exchange for the conversion of the loan granted to Pure Biologics, aimed at reducing its debt. Additionally, Pure Biologics has expressed its intention to carry out a Series S share issue, through which it intends to raise funds for the development of the multiQure project.
– Our intention is to bring to Poland the first project implementing the American biotechnology model. Our goal for the next two years is to prepare our therapy, administer it to the first patients, and obtain preliminary results. This is exactly what sets us apart in the Polish market – we want to reach the ‘moment of truth’ as quickly as possible – says Tomasz Nocuń, head of the multiQure project.
The flagship asset in multiQure’s portfolio is the RNAi platform, a revolutionary therapy for Huntington’s disease and other polyglutamine diseases. The technology developed by multiQure strikes at the root cause of the disease, halting its progression, and, when applied early and correctly, has the potential to block the onset of its symptoms. Another major advantage is the one-time nature of the treatment. The economic potential of the project was assessed by experts at Baker Tilly, who valued it at its current stage at USD 111.3 million, equivalent to over PLN 400 million.