Olema Pharmaceuticals, a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of targeted therapies for women’s cancers, entered into a stock purchase agreement for a private placement of approximately $130 million of common stock to selected institutional and accredited investors, as well as a new senior secured credit facility with an aggregate principal amount of up to $50 million. The private placement is expected to close on Sept. 12, subject to customary closing conditions.
The credit facility is being provided by Silicon Valley Bank, a division of First Citizens Bank, and is a four-year senior secured credit facility with an aggregate principal amount of up to $50 million, of which $25 million will be available upon the closing of the private placement, and the remaining $25 million may be made available upon approval by SVB in its discretion. The company does not anticipate drawing on the credit facility at closing.
“We are very pleased to announce this combined equity and debt financing.” Sean P. Bohen, M.D., Ph.D., president and CEO of Olema Oncology, said. “With the support of both existing and new equity investors as well as SVB, we are now well positioned to execute on our planned monotherapy pivotal Phase 3 trial, OPERA-01, which we expect to initiate in the fourth quarter of this year.”
Olema intends to use the net proceeds from the proposed financing to fund research and development of palazestrant (OP-1250) and other ongoing research programs, and for working capital and general corporate purposes. The proceeds from these financings, combined with current cash, cash equivalents and marketable securities, is expected to be sufficient to fund the current operating plan into 2027.
