Nasdaq-listed BioNTech, which is testing a COVID-19 vaccine candidate, said Monday it raised $250 million from Singapore state-owned investment company Temasek Holdings and other accredited investors in a private placement.
“We are pleased to welcome Temasek onboard as a new shareholder. We believe their long-term investment approach, global presence, and deep experience in the biotechnology field are a good fit,” Ugur Sahin, the company’s CEO and co-founder, said in a statement.
The placement included around $139 million in ordinary shares and $112 million in four-year mandatory convertible notes, the company said in the statement.
The private placement investors will get 2.60 million ordinary shares with a 180-day lock-up agreement, while the convertible notes have a 4.5 per cent coupon and a conversion premium of 20 per cent over the reference price, the statement said. The deal is expected to close in August.
BioNTech focuses on patient-specific immunotherapies to treat cancer and infectious diseases; the company is developing multiple mRNA vaccine candidates for infectious diseases.
In May, BioNTech and Pfizer announced they gave the first U.S. participants in a phase 1-2 clinical trial for a vaccine to prevent the COVID-19 virus.
Earlier this month, BioNTech signed a 100 million euro debt financing deal with the European Investment Bank in a move to boost its manufacturing capacity to be able to quickly supply the COVID-19 vaccine.
The Singapore state-owned investment company has targeted multiple biotechnology companies for investments this year.
Temasek’s other biotechnology healthcare investments have included KAHR Medical, an Israeli biopharmaceutical company developing a novel drug platform. The $18 million investment in KAHR Medical, which was made in February, was led by Mirae Asset Venture Investment; Temasek invested via Pavilion Capital.
In March, Temasek led a $70 million round in Shanghai-based Abbisko Therapeutics, which is developing novel cancer therapies.
In April, Temasek-backed Vertex Ventures participated in a $170 million investment round in ElevateBio, a US-based cell and gene therapy firm.
In May, Temasek led a $65 million investment round in SQZ Biotechnologies, a US-based clinical-stage cell therapy company which also is expanding into infectious diseases.