ObsEva SA (OBSV) Issues Corporate Update

January 28, 2022 4:02 PM EST

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ObsEva SA (NASDAQ: OBSV) announced today that its board of directors approved on January 28, 2022 an increase of its share capital from 85,220,471 to 108,620,471 shares through the issuance of 23,400,000 newly registered shares at an issue price of 1/13 of a Swiss Franc each. The 23,400,000 new shares, to be issued out of the company’s authorized capital, will be fully subscribed for by ObsEva USA Inc., its 100% wholly owned subsidiary, and listed on the SIX Swiss Exchange on or around February 15, 2022. The transaction has been decided to provide the group with additional treasury shares that can be used in the future to raise funds in an efficient manner, as well as for the equity plans of the company and its subsidiaries.

ObsEva also amended its convertible note financing agreement on January 28, 2022 with certain funds and accounts managed by JGB Management, Inc. (JGB), which is structured to provide up to $135 million in borrowing capacity, available in nine tranches. The amendment adjusted the principal balance payable at maturity for the notes to be issued in the second tranche to $10.5 million ($975,000 of original issue discount) and the conversion price for the second tranche notes to a price of $1.66 per share, and accelerated the issuance of the second tranche to January 28, 2022. In addition, pursuant to the amendment, ObsEva will issue warrants to purchase 1,018,716 common shares at an exercise price of $1.87 per share in connection with the second tranche. Additionally, JGB waived certain conditions required to be met to fund the second tranche in exchange for a cash payment of $1.25 million and the amended terms for the notes and warrants to be issued in the second tranche. Except as noted, the terms of the convertible note financing agreement, including with respect to future tranches, remained unchanged. Further information with respect to the amendment to the convertible note financing agreement will be provided in a Form 6-K filed by ObsEva with the Securities and Exchange Commission on January 28, 2022.



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