CHOSA Oncology AB payback of convertible loan in process - update
Apr 20, 2023
CHOSA Oncology AB has as previously announced initiated the process of payback of the convertible loan of 14,98 mSEK (plus interest) SEK which RhoVac obtained from shareholders to support the development of RV001. The process is unfortunately more complex than anticipated, which causes a delay. There have been many questions about the calculation of the interest and below is a clarification.
The original loan was 24.979.760 SEK, and a partial refund of 10.000.000 SEK was paid back on August 29th, 2022. The interest rent is 10% and CHOSA will pay 5 months of interest on the full amount and 7 months of interest on the remaining 14.979.760 SEK. We use the calculation 138 days from April 11th, 2022, to August 29th, 2022. Accordingly, the loan givers interest per 1000 SEK loan is:
1000 SEK * 138 days / 360 days * 10% = 38,33 SEK
After the first repayment, the 1000 SEK loan is now (14.979.760 SEK / 24.979.760 SEK = 0,59968)
= 599,68 SEK. The interest on this amount is 10% for the remaining 7 months 222 / 360 days * 599,68 * 10% = 36,98 SEK.
Accordingly, the interest on the initial loan of 1000 SEK is 38,33 + 36,98 SEK = 75,31 SEK.
The loan repayment is part of the original financial agreement with RhoVac and CHOSA is working diligently to finalize this process as soon as possible as this will benefit loan givers, investors, and CHOSA.
CEO Peter Buhl comments: "We are sorry about the inconvenience and problems that loan givers have experienced. As the money transfer involves several banks and financial service institutions and furthermore is a cross-border transfer the process has been more complex than we - who have taken over RhoVac - had expected."