HTGC Amends AVEO Oncology Facility
AVEO Oncology announced it amended its debt financing facility with Hercules Technology Growth Capital (HTGC).
Pursuant to its amended loan agreement with HTGC, AVEO received a new $10 million loan in addition to an outstanding principal of $11.6 million from an existing loan agreement. The new loan carries an interest only repayment period of 12 months, with the ability to extend such period for up to an additional 12 months based on the achievement of certain milestones, and has a maturity date of January 1, 2018.
The existing loan carries an interest only period of three months, and is expected to be fully repaid by December 2015. In conjunction with the new loan, the company has issued a warrant to purchase an aggregate of 608,696 shares of AVEO’s common stock, at a price of $1.15 per share.
“Maximizing our financial strength and flexibility is a key component of AVEO’s overall strategy, and success in amending our debt facility gave us the ability to terminate our lease for unused office and research space as part of our continued efforts to reduce operating costs,” said Tuan Ha-Ngoc, president and CEO of AVEO. “Together, these agreements simplify our capital commitments and provide greater operating flexibility. This allows us to continue to execute on our strategy, which is to focus our internal resources to advance AV-380 in cancer cachexia while leveraging partner resources to further the development of our pipeline.”
AVEO Oncology is a biopharmaceutical company committed to discovering and developing targeted therapies designed to impact the lives of people with cancer by addressing unmet medical needs.