Evolva has entered into a Standby Equity Distribution Agreement (“SEDA”) with a fund managed by Yorkville Advisors Global whih could see Yorkville provide up to CHF30 million in equity financing to the company.
Evolva has entered into a Standby Equity Distribution Agreement (“SEDA”) with a fund managed by Yorkville Advisors Global. Under the terms of the agreement, Yorkville has committed to provide up to CHF30 million in equity financing over a 36 month period in individual tranches of up to CHF1,000,000 each. In exchange for the funds to be provided, Yorkville will receive Evolva shares at a price which will be determined anew each time a SEDA tranche is called. The shares will be placed at a 5% discount to the market price – which is in line with Swiss market practice for private placements.Evolva says that it and Yorkville have successfully worked together on a similar basis in the 2011-2013 period. The SEDA has been established as part of the medium-term funding of Evolva’s operations. If Evolva were to utilise the SEDA in full, the cash runway would be extended by roughly one year. It remains at the sole discretion of Evolva to determine if and when to draw from the facility. In return for the 3-year investment commitment provided by Yorkville, Evolva will pay an initial upfront fee of CHF250,000 in cash. Two additional instalments of CHF200,000 each (settled in cash or Evolva shares) will be due when the amount drawn from the facility crosses CHF10 million and CHF20 million. Evolva will create an initial block of 25m treasury shares out of authorised capital which may be used for future share issues under the SEDA agreement or other financing purposes. At the current share price (CHF 0.59) the total commitment represents a maximum of approximately 51 million shares. At the date of this release, the number of Evolva shares in issue is 399.2 million. “The SEDA provides us with financial flexibility, which is key at our current stage,” said Oliver Walker, CFO of Evolva. “Moreover, it has a reasonable pricing, limiting dilution for our current shareholders. It is a great addition to our financing toolkit. We have worked with Yorkville before and I am confident the facility will work as smoothly as it did back then.”