Benzinga | Dec 15, 2020 01:05PM EST

Mereo BioPharma Offers Update On AIM Delisting, Continued Listing On Nasdaq; Issued Added Warrants Related To Deal With Silicon Valley Bank, Kreos Capital V

Mereo BioPharma Group plc (NASDAQ:MREO, AIM: MPH))) ("Mereo" or "the Company"), a clinical stage biopharmaceutical company focused on oncology and rare diseases, today provided a further update with respect to the cancellation of admission of its Ordinary Shares to trading on AIM and the continued listing of its ADSs on Nasdaq, as originally announced on November 11, 2020.

As previously announced, the last day of trading of the Company's Ordinary Shares on AIM will be December 17, 2020 and the proposed AIM Delisting will be effective from 7.00 am London time on December 18, 2020. Mereo will retain the listing of its ADSs on the Nasdaq Global Market under ticker symbol MREO. Following the AIM Delisting, the Company's American Depositary Shares ("ADSs") will remain listed, and only be tradeable on Nasdaq.

Further information about the process to convert Ordinary Shares into ADSs was provided in the announcement and circular published by the Company on November 11, 2020, and is also available on the Company's website at www.mereobiopharma.com/AIM-Delisting

Following the AIM Delisting, N+1 Singer will cease to act as nominated adviser and broker to the Company.

Capitalised terms used but not defined in this announcement are the same as those included in the announcement made on November 11, 2020.

Mereo further announced that, in connection with ongoing discussions relating to the adjustment to certain warrant instruments dated August 21, 2017 (the "2017 Warrant Instrument") and October 1, 2018 (the "2018 Warrant Instrument" )(together the "Warrant Instruments") between the Company and Silicon Valley Bank and Kreos Capital V (UK) Limited (the "Lenders"), as announced in the Company's interim financial results statement issued on September 29, 2020, the Company has today issued additional warrants giving each of the Lenders the right to subscribe for 621,954 ordinary shares at a price of US$0.4144 per share, currently equivalent to approximately 0.3% of the issued share capital of the Company (the "2020 Warrants").

The 2020 Warrants are an adjustment to the Warrant Instruments and accordingly those warrants issued to each Lender will be apportioned between the 2017 Warrant Instrument and 2018 Warrant Instrument in the number of 469,575 and 152,379 respectively for each Lender and will be subject to the same final exercise date as all prior warrants issued to the Lenders thereunder being August 21, 2027 for the 2017 Warrant Instrument and October 1, 2028 for the 2018 Warrant Instrument.

Mereo also announced today that the loan entered into between the Company and the Lenders pursuant to a loan agreement dated September 28, 2018 has now been repaid in full.