Under this arrangement, the EIB agreed to provide BioNTech with a credit in an amount up to €100 million to partially finance such development and expansion. The credit consists of (i) a term loan in the amount of €50 million that may be drawn in a single tranche upon the achievement of certain milestone events, not all of which have been achieved (Credit A), and (ii) a term loan in the amount of €50 million that may be drawn in a single tranche (Credit B). Credit B may only be drawn after Credit A has been drawn down and upon the achievement of certain milestone events. Each tranche under Credit A and Credit B must be repaid within six years from the date on which the tranche is disbursed. The closing of the financing agreement, subject to achieving certain milestone events, was not fulfilled before June 30, 2020 and had no accounting impact within the three and six months ended June 30, 2020.
June 2020 Private Placement
On June 29, 2020, BioNTech announced the signing of a private investment of €223.9 million ($250.7 million; this and the following amounts calculated using the exchange rate in effect as of June 30, 2020 as published by the German Central Bank (Deutsche Bundesbank)) by a fund associated with Temasek Capital Management Pte. Ltd., or Temasek, and another accredited investor, which investment BioNTech refers to as the June 2020 Private Placement. The private placement includes an investment of approximately €123.9 million ($138.7 million) in ordinary shares and a €100.0 million ($112.0 million) investment in 4-year mandatory convertible notes. Upon the closing of the June 2020 Private Placement, the investors will receive an aggregate of 2,595,996 ordinary shares in BioNTech, which will be subject to a 180-day lock-up agreement. The four-year mandatory convertible note will have a coupon of 4.5% per annum and a conversion premium of 20% above the reference price. The closing of the investment, subject to customary closing conditions, was not fulfilled before June 30, 2020 and had no accounting impact within the three and six months ended June 30, 2020.
10 | Issued Capital and Reserves |
On September 18, 2019, BioNTech effected a 1:18 share split by issuing 206,595,492 shares by way of a capital increase from its own funds; thus, no outside proceeds were received. This capital increase came into effect upon registration with the commercial register (Handelsregister). The accompanying unaudited interim condensed consolidated financial statements and notes to the unaudited interim condensed consolidated financial statements give retroactive effect to the share split for all periods presented.
Capital transactions during the six months ended June 30, 2020
During the six months ended June 30, 2020, the issued share capital of BioNTech increased by k€5,894. Each share has a nominal value of €1.00. As a result of the financing transactions the capital reserve increased by k€233,113. Costs of k€1,653 related to these equity transactions were recorded in equity as deduction from the capital reserve. The financing transactions that occurred during the six months ended June 30, 2020, were as follows:
Shanghai Fosun Pharmaceuticals (Group) Co., Ltd
As part of the BNT162 program, BioNTech entered a strategic alliance with Fosun Pharma to develop COVID-19 vaccine candidates in China. Fosun Pharma agreed to make an equity investment of k€45,568 (k$50,000) for 1,580,777 ordinary shares in BioNTech via Fosun Industrial Co., Limited, Hong Kong. The increase in share capital with a nominal amount of k€1,581 was subject to execution of share subscription documentation and approval from regulatory authorities in China and became effective with the registration with the commercial register (Handelsregister) on April 23, 2020. As result of the transaction the capital reserve increased by k€43,987.
Pfizer Inc., New York, New York, United States
As part of the collaboration between BioNTech and Pfizer, for the co-development of BNT162, Pfizer agreed to make an equity investment of k€103,890 (k$113,000). The issuance of 2,377,446 ordinary
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