Edge Therapeutics, a clinical-stage biotechnology company developing hospital-based therapies in the management of acute, life-threatening conditions, closed a $20 million dual-tranche term loan with Hercules Capital.

The term loan will be used to refinance existing debt and for general corporate purposes.

An initial $15 million was drawn down at closing, with an additional $5 million available, at Edge’s option, through June 15, 2017. The term loan will mature on February 3, 2020.

“We are pleased to announce this new loan facility, which increases our cash position at an attractive cost of capital, enabling us to continue investing in our pipeline and executing our corporate growth strategy,” said Andrew Einhorn, chief financial officer of Edge. “Importantly, we believe that this credit facility will strengthen our financial position at the anticipated completion of the pivotal, Phase 3 NEWTON 2 study of our lead therapy EG-1962 for the treatment of aneurysmal subarachnoid hemorrhage.”

“Hercules is pleased to extend and expand our financing partnership with Edge at this important stage to allow them to continue to advance their pipeline and achieve their growth objectives,” said Scott Bluestein, chief investment officer at Hercules Capital. “This further investment in Edge exemplifies our steadfast principle of being there to support our portfolio companies through multiple stages of development.”