Business Finland

Targovax OY has received funding from Business Finland for the commercialisation of ONCOS-102. Business Finland is a publicly financed funding agency that finances research and development activities for companies in Finland. (The Finnish trade promotion organization and the Finnish Funding Agency for Technology and Innovation (TEKES) united as Business Finland in 2018.)

Three separate R&D loans with special terms have been granted under loan agreements dated September 2010, February 2012 and December 2013. The loans have a default terms of 10 years duration, of which the first five years are free of repayment. However, the ultimate terms are max 20 years duration from which max 10 years are free from repayment. Repayment shall be made in equal annual instalments during the latter five years, while interest is paid annually throughout the entire loan period. The applicable interest rate under the R&D loans is the European Central Bank’s steering rate less 3 percentage points per annum, although not less than 1 percent.

Should the project fail, it is possible to get a remission on part of the debt in accordance with the EU competition legislation. The final amount of the non-recovered part of the principal depends on factors such as the time and the materialised interest rate trend. The final sum will be determined when an eventual decision on non-recovery is made.

Targovax Group has issued an on-demand guarantee in favour of Business Finland for the repayment obligation of Targovax OY under the R&D loans. The loan agreements include no financial covenants.

Please see the quarterly and annual reports for further details.