AEON Biopharma Announces Execution of Exchange Agreement with Daewoong

Core Viewpoint - AEON Biopharma and Daewoong Pharmaceutical have finalized an agreement to exchange $15 million of convertible notes into new equity, new notes, and cash-exercise warrants, which is a significant step towards reducing AEON's debt and advancing its biosimilar strategy for ABP-450 [2][3][4] Group 1: Transaction Details - The agreement involves the exchange of $15 million in convertible notes plus accrued interest into new equity and $1.5 million in new notes due in 2030, along with cash-exercise warrants for 8 million shares of common stock [2][3] - The cash-exercise warrants, if exercised, could provide AEON with over $8 million in additional cash proceeds [2] - The transaction is subject to shareholder approval, which is a necessary step for its consummation [3][4] Group 2: Impact on Company Structure - The exchange will eliminate more than 90% of AEON's outstanding debt, significantly transforming the company's capital structure [4] - This move is expected to strengthen Daewoong's long-term strategic alignment with AEON and its stockholders [4] Group 3: Company Background - AEON Biopharma is focused on entering the U.S. therapeutic neurotoxin market, which exceeds $3 billion annually, through the development of ABP-450 as a biosimilar to BOTOX [6] - ABP-450 is manufactured by Daewoong Pharmaceutical and is already approved as a biosimilar in India, Mexico, and the Philippines, with exclusive rights for therapeutic indications in the U.S., Canada, and the EU [6]