GeNeuro announced the signature of a credit agreement with the European Investment Bank (EIB) for a total amount of up to €25 million, supported by the InvestEU programme.
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GeNeuro launched a phase 2 trial at the end of 2022 that is evaluating the clinical efficacy of a six-month treatment with temelimab, the anti-W-ENV antibody developed by GeNeuro to improve cognitive impairment and fatigue in long COVID patients who test positive for the presence of the W-ENV protein in their blood.
The W-ENV protein was observed in more than 25% of patients with persistent symptoms after having had COVID. If the current clinical trial is successful, this personalised medicine approach could offer a therapeutic solution to the millions of patients affected by long COVID.
The €25 million credit facility is divided into three tranches: €7 million for the first tranche (tranche A), €10 million for the second tranche (tranche B) and €8 million for the third tranche (tranche C).
The disbursement of each tranche, including the first disbursement of tranche A, is subject to certain conditions.
The three tranches will be available for 36 months from the signature of the financing agreement.
The credit agreement will have a fixed annual interest rate of 2% for each tranche as well as a declining capitalised interest rate per tranche (7% for tranche A, 5% for tranche B and 2.5% for tranche C), with a maturity of five years for each tranche.
This interest will be capitalised annually. It will be payable at maturity and incorporated in the nominal amount of the loan, and will therefore bear interest.
In certain circumstances, the credit may be partially or fully repaid in advance for a fee, at the request of GeNeuro or the EIB following certain prepayment events. These include a change in control or in the management of GeNeuro.
Subject to certain conditions, if standard events of default occur (such as payment default, misrepresentation or cross default), the EIB may require GeNeuro to immediately repay all or part of the outstanding loan or cancel any undisbursed portion. ■