Neuralstem Secures $8MM in Debt Financing From Hercules
Neuralstem announced that it secured $8 million in debt financing with Hercules Technology Growth Capital, to fund the company’s capital budget through late 2014.
The funding of $8 million is in the form of a secured note which is repayable in installments over 42 months following an interest-only period of nine months and up to 12 months upon funding of a second tranche. The note bears interest at a prime-based variable rate.
In addition, Neuralstem issued Hercules 648,798 warrants to purchase shares of Neuralstem common stock at an exercise price of $1.08 per share. The second tranche of $2 million will be made available to the company, at the company’s option until September 30, 2013, subject to certain conditions.
Rockville, MD-based Neuralstem’s patented technology enables the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities, and the ability to control the differentiation of these cells constitutively into mature, physiologically relevant human neurons and glia.