Daily News: December 24, 2014

Horizon Provides Interleukin Genetics Venture Loan

Interleukin Genetics announced it entered into a venture loan and security agreement with Horizon Technology Finance under which the company has borrowed $5 million. In connection with the loan agreement, the company has issued to Horizon warrants to purchase a total of 2,492,523 shares of common stock at a per share exercise price of $0.1003. The lender warrants have a term of 10 years. The company agreed to repay the loan in 45 monthly payments, including an initial 15-month period of interest-only payments.

Pursuant to the purchase agreement, the company has agreed to issue an aggregate of 50,099,700 shares of the company’s common stock at a price per share of $0.1003, as well as warrants to purchase up to an aggregate of 50,099,700 shares of common stock. The warrants have a term of seven years and an exercise price of $0.1003 per share. BTIG, LLC served as the placement agent for the private placement.

Net proceeds from the private placement and loan will be used primarily to accelerate commercialization of the company’s proprietary genetic tests, including PerioPredict, which identifies genetic variations that increase the risk for severe periodontal disease, and for general corporate and working capital purposes.

The securities offered in this private placement transaction have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Pursuant to the terms of a registration rights agreement entered into with the investors, Interleukin Genetics has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock sold in the offering and issuable upon exercise of the warrants.

Interleukin Genetics develops and markets proprietary genetic tests for chronic diseases and health related conditions.