Chenel Capital is thrilled to announce the successful closing of a Convertible Note Financing for KalGene Pharmaceuticals, Inc.

KalGene is a Canadian biotechnology company focused on slowing the progression of, and even reversing the development of Alzheimer’s Disease with their patented KG207 molecule. The company has clearly defined value inflection points and potential to become the “Best in Class” Alzheimer’s therapy with multibillion-dollar potential.

Following the FDA approval of Biogen’s Aduhelm, KalGene developed an anti-amyloid therapy to slow the progression of Alzheimer’s disease that overcomes the safety issues inherent with antibody-based approaches, including Aduhelm, and is more effective, and requires less product for efficacy.

The legal and market tailwinds following the approval of Biogen’s Aduhelm could cause strong institutional capital inflows to the biotechnology space in both public and private markets. Alzheimer’s antibodies which fit the same approval precedence as Aduhelm are capturing the attention of investors across the globe. This new market reality following the Aduhelm approval represents a special situation that offers investors the unique opportunity to receive several multiples on their invested capital.

Chenel Capital specializes in structuring creative financing vehicles, and the Kalgene Convertible Note is a perfect example. Convertible Notes are useful financing instruments that are typically used to fund growth-stage companies before a larger equity financing, in this case an IPO, takes place. The KalGene Convertible Note offered a unique opportunity for investors to simultaneously achieve three, typically independent, core investment objectives: (i) current income, (ii) moderate structural capital appreciation, and (iii) the chance to maintain substantial equity upside.