Compugen swaps financial interest in product candidates for $8 million

If investor doesn't make payments, interest to be exchanged for shares

By Devika Patel

Knoxville, Tenn., Dec. 20 - Compugen Ltd. arranged an $8 million investment agreement with Baize Investments (Israel) Ltd. on Dec. 20, according to a 6-K filed Tuesday with the Securities and Exchange Commission.

Baize will invest the cash in the company in exchange for a financial interest in certain therapeutic monoclonal antibody product candidates.

The company must achieve specific milestones over the course of three years; in exchange, the investor will pay Compugen $2 million within five business days, $3 million by June 30 and another $3 million by Sept. 30, 2012.

If the payments are not made, Compugen may exchange the investor's participation interest for ordinary shares, at the rate of $6.00 per share, and the investor's future financial interest will be terminated.

Compugen is a drug and diagnostic discovery company based in Tel Aviv.

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