TME Pharma debt holders have agreed to extend the maturity of outstanding loans from May 2027 to June 30, 2028, while the biotechnology company has arranged €750,000 in new bond financing. The company said on October 26, 2026, that the measures extend its financial visibility to the second quarter of 2028.

Key Takeaways

  • Existing debt holders agreed to the extension, with partial cash repayments planned for four external holders.
  • CEO Diede van den Ouden is subscribing to a €250,000 bond without warrants or conversion rights.
  • A €500,000 Hexagon Capital Fund financing includes warrants and could lead to significant share dilution if bonds are converted after a default.

TME Pharma debt extension and repayments

The extension covers debt issued in May and August 2025 with an aggregate nominal loan amount of approximately €2.4 million. All holders, including the CEO and two supervisory board members, agreed to move the maturity from May 28, 2027, to June 30, 2028.

TME Pharma will repay part of the debt held by four external holders, amounting to approximately €760,000, at 97.7% of nominal value. The CEO and the two board members will not receive repayments. Following those payments, the extended debt will have an aggregate value of approximately €1.64 million, the company said.

The company retains the right to repay the debt early. Holders can require early repayment if control of the company changes, and under certain conditions when they exercise warrants associated with the debt.

ItemDetails
Extended debt maturityJune 30, 2028, moved from May 28, 2027
CEO bond subscription€250,000; no warrants or conversion rights
Initial Hexagon financing€500,000; 10% annual interest and 24-month maturity
Hexagon warrants2 million warrants at €0.15 per share, exercisable over three years

CEO and Hexagon provide new financing

Van den Ouden is subscribing to a €250,000 bond that carries no warrants or rights to convert into shares. The interest-free bond has a nominal value of €297,619.05 and is repayable in cash at that value on June 30, 2028. TME Pharma may repay it early without a penalty under a schedule that increases the repayment percentage over time.

Separately, TME Pharma entered into an initial €500,000 bond financing agreement with Hexagon Capital Fund. The bonds carry 10% annual interest, payable monthly, have a 24-month maturity and are repayable through monthly cash installments. A structuring fee equal to 5% of the subscribed amount is payable to Hexagon.

Warrants and default conversion carry dilution risk

Hexagon receives 2 million warrants exercisable at €0.15 per share over three years. Full exercise would generate €300,000 in gross proceeds and issue 2 million shares, equivalent to approximately 2.1% of TME Pharma’s current share capital.

The Hexagon bonds can be converted into shares only in the event of default. The company cautioned that conversion could result in significant dilution because the number of shares issued would depend on the share price at the time.

An additional €1 million is available under the same financing conditions at TME Pharma’s discretion, but the company said it does not currently anticipate using it and intends to repay all loans in cash.

Approvals and licensing discussions

The management and supervisory boards approved the transactions. Because the CEO and two supervisory board members are bondholders, non-conflicted board members resolved on the debt extension and the CEO bond.

TME Pharma said it is in concrete discussions over a licensing agreement for its NOX-A12 drug candidate, with generating cash among the objectives. No licensing agreement has been announced.

Next milestone

TME Pharma said it will inform the market when the NOX-A12 licensing negotiations are concluded.

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