Sensorion, a biotech specializing in the treatment of inner ear diseases (the “Company”), announced that it has carried out a capital increase of € 1,614,449 (USD approximately $1,915,708.46) reserved to Cochlear Investment Ltd.

Cochlear Americas

Following signature of its collaboration agreement with Cochlear as announced on December 18, 2017, Sensorion has finalized the capital increase in accordance with the 13th resolution voted by the Shareholder’s meeting of May 30, 2017.

The Company has thus issued 533,755 new shares at a nominal value of €0.10 (USD approximately $0.12) each for a total of €1,614,448.75 (USD approximately $1,915,774.53).

“The confidence that our development partner, Cochlear, has expressed via this investment in our partnership is matched by our enthusiasm in this cutting-edge collaboration at the intersection between medtech and biotechnology,” said Nawal Ouzren, CEO of Sensorion. “We look forward to exploring the potential complementarity of our small molecule SENS-401 with Cochlear’s implantable devices.”

Screen Shot 2017-12-21 at 1.23.04 PM

Purpose of Capital Increase

Sensorion will principally use the funds to finance the preclinical combination studies that will evaluate SENS-401’s therapeutic effect on hearing outcomes achieved with Cochlear’s implantable devices. SENS-401 has demonstrated in preclinical models (noise- and drug-induced hearing loss) the capacity to enhance survival and preserve functional integrity of hair cells in the inner ear. It has the potential to improve hearing outcomes for patients undergoing cochlear implant surgery.

Preclinical combination studies will be initiated in 2018 with potential clinical trials to begin as soon as 2019. In exchange for its investment, Cochlear received a right of first negotiation for a global license to use SENS-401 in patients with certain implantable devices.

Terms of the Operation

This operation was carried out following the decisions of the Board meeting of December 20, 2017 in accordance with the delegation of powers granted by the Shareholders’ Meeting of May 30, 2017 at a price representing the volume weighted average price over the 20 days before the decision.

The capital increase was carried out via the issuance of ordinary shares without preferential subscription rights through a placement reserved to certain beneficiaries.

The new shares carry dividend rights and were immediately admitted to trading on Euronext Growth regulated market in Paris under ISIN FR0012596468 and ticker ALSEN.

In accordance with its obligations, Cochlear has registered the shares in nominative form and has committed to not trade the shares for the duration of the research collaboration.

In addition, if Cochlear and Sensorion were to sign a license agreement at a later stage, Cochlear will have the opportunity to increase its shareholding in Sensorion in an amount and at a price to be then agreed upon.

Sensorion’s share capital now consists of 8,761,996 shares.

Cochlear Investment Ltd holds 6.09% of Sensorion’s share capital.

Source: Sensorian, Cochlear