4SC AG — Capital/Financing Update 2014

Jun 5, 2014

News Details

Ad-hoc | 5 June 2014 18:47

4SC secures financing with shareholder loan of up to EUR 10 million

4SC AG / Key word(s): Agreement

05.06.2014 18:47

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Publication of an ad hoc release pursuant to Section 15 of the German
Securities Trading Act (Wertpapierhandelsgesetz, WpHG)

4SC secures financing with shareholder loan of up to EUR 10 million

Planegg-Martinsried, Germany, 05 June 2014 - 4SC AG (Frankfurt, Prime
Standard: VSC) today agreed a loan of up to EUR 10 million with its
shareholder Santo Holding (Deutschland) GmbH, Holzkirchen, earmarked for
financing the costs of preparing for a planned clinical trial of the drug
resminostat in the liver cancer indication and for financing the ongoing
administrative costs of 4SC AG.

As per its financial planning, 4SC can draw down credit lines in tranches
until 31 December 2015. The loan carries interest of 8% p.a. (maturity
date) and runs until the end of 2016. Upon receipt of certain financing,
e.g. from licensing agreements for 4SC drug candidates with pharmaceutical
companies, the contract stipulates early repayment and, under certain
conditions, a reduction in the available loan amount. If 4SC AG were to
carry out a large cash capital increase during the loan term, it would also
have the option of repaying that portion of the loan which has already been
utilised by issuing new shares through a concurrent non-cash capital
increase based on the same terms as the cash capital increase.

The loan agreement contains the usual rights of Santo to terminate the
agreement for cause as well as certain obligations that limit 4SC's ability
to obtain additional borrowings (with the exception of standard supplier
loans, among others) and require approval for larger investments. The loan
is secured by way of assignment as security of the proceeds from the sale
of certain intangible assets of 4SC, with 4SC still entitled to make
decisions about the use and sale of such assets during the term until one
month after the loan receivables have become due under the agreement.

If the loan is not repaid until the end of its term, 4SC will grant Santo
options for acquiring 4SC Discovery GmbH or certain assets of 4SC Discovery
GmbH at market value. The sales proceeds will be used to repay the loan.

Ad hoc ends

Information and Explaination of the Issuer to this News:

About 4SC

The Group managed by 4SC AG (ISIN DE0005753818) discovers and develops
targeted, small-molecule drugs for treating diseases with high unmet
medical needs in various cancer and autoimmune indications. These drugs are
intended to provide innovative treatment options that are more tolerable
and efficacious than existing therapies, and provide a better quality of
life. The Company's pipeline comprises promising products that are in
various stages of clinical development. 4SC's aim is to generate future
growth and enhance its enterprise value by entering into partnerships with
leading pharmaceutical and biotech companies. Founded in 1997, 4SC had a
headcount of 64 employees (55 FTEs) at 31 March 2014. 4SC AG has been
listed on the Prime Standard of the Frankfurt Stock Exchange since December
2005.

Cautionary statement regarding forward-looking statements

This press release contains certain forward-looking statements. Any
forward-looking statement applies only on the date of this press release.
By their nature, forward-looking statements are subject to a number of
known and unknown risks and uncertainties that may or may not occur in the
future and as a result of which the actual results and performance may
differ substantially from the expected future results or performance
expressed or implied in the forward looking statements. No warranties or
representations are made as to the accuracy, achievement or reasonableness
of such statements, estimates or projections, and 4SC AG has no obligation
to update any such information or to correct any inaccuracies herein or
omission herefrom which may become apparent.
For more information please visit www.4sc.de or contact:

4SC AG
Jochen Orlowski, Corporate Communications & Investor Relations
jochen.orlowski(at)4sc.com, Tel.: +49-89-7007-6366

MC Services
Katja Arnold, Michelle Kremer
katja.arnold(at)mc-services.eu, Tel.: +49-89-2102-2840

The Trout Group
Chad Rubin
crubin(at)troutgroup.com, Tel.: +1-646-378-2947

05.06.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: 4SC AG
Am Klopferspitz 19a
82152 Martinsried
Germany
Phone: +49 (0)89 7007 63-0
Fax: +49 (0)89 7007 63-29
E-mail: public@4sc.com
Internet: www.4sc.de
ISIN: DE0005753818
WKN: 575381
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of Announcement DGAP News-Service

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