Jaguar Animal Health, an animal health company focused on developing and commercializing gastrointestinal products for companion and production animals, obtained a senior secured term loan facility for up to $8 million, subject to specified conditions, with Hercules Technology Growth Capital.
The initial $6 million of the loan facility was drawn on August 18, 2015. the loan agreement contains a minimum cash covenant of up to $4.5 million which can be reduced or eliminated with the achievement of certain milestones. An additional $2 million is available contingent on further milestones, all as set forth in the loan facility.
The company intends to use the loan proceeds to finance clinical activities, commercialization, and general working capital.
The loan facility has an initial term of approximately 36 months maturing on August 1, 2018, with an interest-only period through February 29, 2016, and amortized payments of principal and interest thereafter. The company has an option to extend the maturity date to February 1, 2019 and the interest-only period through August 31, 2016 upon the satisfaction of certain performance milestones and the company electing to borrow the additional $2 million if available, all on the terms and conditions set forth in the loan agreement.
“We are pleased to complete this fundraising to support ongoing clinical activities for our potential drug candidates,” commented Lisa Conte, Jaguar’s president and CEO.