Pharming reports 5M-euro debt reduction

Leiden, Netherlands-based biotechnology company Pharming says it has reached an agreement with an additional holder of convertible bonds to  cancel outstanding debt by payment in cash and shares. Convertible bonds  with a nominal value of 5.0 million euros ($6.8 million) will be  cancelled by a payment of 1.0 million euros in cash and conversion of  the remaining 4.0 million euros in shares at a valuation of 2.64 per  share. Total shares issued in relation to the conversion are  approximately 1.5 million, increasing the company's number of  outstanding shares after conversion to just below 99 million.

Sijmen de Vries, chief executive of Pharming, commented: "the  transaction announced today further improves our balance sheet. We  continue to remain sensitive to the short-term needs of some of the  convertible bond holders and our intention to strengthen our financial  position. In addition, the debt settlement reduces annual bond interest  payments by approximately 350,000 euros per annum. We look forward to  arranging similar deals with other holders of convertible bonds."