Evolva Holding, an active discovery and development player of novel medicines and nutritional ingredients through synthetic biology with a major presence in India, the US and Europe, has entered into a Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV.
Under the terms, YA Global has committed to provide up to Swiss franc 30 million (close to R175 crore) in equity financing over a 36 month period in individual advances of up to Swiss franc 600,000 with an initial advance of Swiss franc 500,000. In exchange for the funds, YA Global will receive Evolva shares. YA Global can at no point in time hold more than 9.9% of the number of outstanding shares.
?YA Global is committed not to short sell or enter into any hedging transactions related to Evolva stock,? said PM Murali, managing director and CEO, Evolva.
In return for the three-year investment commitment provided by YA Global, Evolva will pay an upfront commitment fee of Swiss franc 600,000 (2% of the commitment) to be paid in newly issued Evolva shares. At the moment of signing of the agreement, Evolva will request a first advance of Swiss franc 500,000.
Evolva has created 8 million treasury shares out of authorised capital which may be used for the initial and several future share issues under the SEDA agreement, Murali said.
A senior official of Evolva told the FE that the funds will be utilised to develop new frangrances, flavours and nutrition based food items.