Axovant Gene Therapies amended its loan and security agreement with Hercules Capital.

The amendment provides for a nine-month interest-only period commencing December 2019, as well as the elimination of the covenant to maintain a minimum cash balance. Prior to the amendment, the minimum cash covenant amount was $30million. Axovant prepaid 50%, or approximately $15.7 million, of outstanding principal due without penalty. No new securities or derivatives in Axovant Gene Therapies are being issued as part of this loan amendment with Hercules.

“We are very pleased with the new facility and greatly appreciate the support of Hercules as we continue to strengthen our financial position. The amendment lowers our monthly spend by approximately $2 million per month and additionally frees up $15.7 million in cash, formerly subject to the covenant, to support the development of our three clinical programs,” said David Nassif, CFO of Axovant.

Axovant Gene Therapies, part of the Roivant family of companies, is a clinical-stage company focused on developing a pipeline of gene therapy product candidates for debilitating neurological diseases