Allied Minds secures debt funding and raises funds for drug programme

22nd Aug 2016 07:07

(ShareCast News) - Venture capital-style investor Allied Minds has arranged a one-year debt facility Silicon Valley Bank in the US, while its drug discovery subsidiary has raised funds for its leading project from institutional investors.Secured over certain group assets, the $20m one-year facility from the SVB has diversified the capital structure and is "a powerful endorsement of the group's growth and development prospects", said chief executive Chris Silva.Meanwhile, as planned, the $15m equity raising by joint venture Allied-Bristol Life Sciences (ABLS) for the 'ABLS II' subsidiary came after the successful completion of a drug candidate feasibility programme for novel therapeuties to treat fibrotic and autoimmune diseases.Allied Minds contributed some funds to up its stake in ABLS II to 35.95%, alongside $3m from joint venture partner Bristol-Myers Squibb Company, $6m from Woodford Investment Management and $3m from Invesco.ABLS Capital, which includes Allied Minds, Woodford and Invesco among its investors, will fund 80% of the next phase of development of the lead optimisation programme, with Bristol-Myers Squibb funding the remaining 20%.Meanwhile, the $20m debt facility was secured after the group met certain financial strength tests set by SVB."We are pleased to have SVB's support as we continue to build and develop our portfolio and look forward to what we anticipate will be a long-term relationship with SVB," said Silva."The SVB facility further diversifies our capital structure and is a powerful endorsement of the group's growth and development prospects."