RYVU (EGFF)

The project concerns Ryvu's research, developments and innovation (RDI) activities related to new therapies for oncological patients. The loan will finance both operational and capital expenditures related to clinical state development programmes, including clinical trials, regulatory process and intellectual property, as well as further discoveries and pre-clinical pipeline.

The related RDI investments aim at further develop the promoter's platform for new target validation and hit-to-lead discovery, covering the entire product development, from an initial concept to pre-clinical and clinical trials.

The purpose of the loan is to provide direct equity-type financing under the European Growth Finance Facility ("EGFF"), a product under EFSI guarantee, to finance research and development activities of a clinical stage biotechnology company Ryvu. Ryvu's expertise lies in the discovery of small molecule candidates with optimised properties to address specific limitations of existing therapeutic approaches, mainly in oncology, with the most advanced products targeting severe blood cancers. The financing of this project addresses the failure in financial markets for RDI-driven European SMEs and MidCaps suffering from systemic shortages of large, non-dilutive financing options for growth investments. Creation of knowledge and support of skilled jobs in Poland will further contribute positively towards the EU's 3% RDI intensity target. Currently, the Company does not have access either to non-dilutive or to long-term debt funding sources from traditional or even alternative debt providers. Due to the Russian invasion of Ukraine, the Eastern European markets' volatility has significantly increased, and the second quarter of 2022 witnessed a general worsening of the equity markets globally. As such, access to both equity markets and commercial debt providers has been even further limited for innovative but risky companies such as Ryvu. 

The financing structure is adjusted to the investment needs of the Company, with a long tenor and low cash interest, while most of the EIB remuneration will come in a form of warrants, minimising cash outflows.

Ryvu's investments concern RDI activities that are expected to be carried out in existing facilities already authorised for the same purpose and would therefore not require an Environmental Impact Assessment (EIA) under Directive 2014/52/EU amending 2011/92/EU. Full environmental details will be verified during appraisal of the project.

The promoter is a private company, not operating in the utilities sector, and does not have the status of a contracting authority; thus the project is not covered by the EU directives on procurement. However, the Promoter's procurement procedures are expected to be in line with EIB guidelines for private sector projects. The EIB's services will verify details during the project due diligence.