Horizon Technology Leads Argos Venture Loan Facility
Argos Therapeutics announced it entered into a $25 million venture loan led by Horizon Technology Finance. Argos plans to devote the loan proceeds to the continuing development of AGS-003, the company’s lead oncology product candidate, being evaluated in the pivotal ADAPT phase 3 clinical trial for the treatment of metastatic renal cell carcinoma (mRCC), and further development of its Arcelis technology platform, including the leasing, build-out and equipping of Argos’s planned automated commercial manufacturing facility and general corporate purposes.
“With this additional capital from Horizon, Argos is well positioned to further advance our development of AGS-003 and our proprietary Arcelis platform, including continuing our plan to build-out an automated manufacturing facility which we believe is critical to the successful commercialization of personalized immunotherapies such as AGS-003,” stated Jeff Abbey, president and CEO of Argos.
The loan is available in two tranches of $12.5 million. The initial funding of the first $12.5 million tranche closed on September 29, 2014. The first tranche, which includes an initial interest-only period of two years, is a four-year senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR plus 8.75%. The second tranche of $12.5 million is available for funding upon the completion of enrollment and randomization of patients in the ongoing phase 3 trial of ASG-003. The second tranche, which includes an initial interest-only period of 18 months, is a 42-month senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR plus 8.75%.
“Horizon is pleased to lead this significant loan for Argos, an exciting company with promising treatments for cancer and infectious diseases,” stated Gerald A. Michaud, president of Horizon. “With Argos’s recent IPO, notable investors, and a pivotal phase 3 clinical trial underway, the company is poised for further success as it works to commercialize personalized immunotherapies.”
Argos Therapeutics is a biopharmaceutical company focused on the development and commercialization of fully personalized immunotherapies for the treatment of cancer and infectious diseases using its Arcelis technology platform.