PDS Biotechnology, a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer immunotherapies and infectious disease vaccines based on the company’s proprietary Versamune and Infectimune T cell activating technologies, entered into a debt financing agreement led by Horizon Technology Finance to provide up to a $35 million term loan.
“We are pleased to partner with Horizon, a leading specialty finance company that has an extensive history of supporting innovative life science companies,” Frank Bedu-Addo, CEO of PDS Biotech, said. “We anticipate a number of important milestones across our oncology and infectious disease programs. This transaction immediately strengthens our balance sheet and provides the financial resources necessary to advance the company’s clinical pipeline. We look forward to our meeting with the U.S. Food and Drug Administration this quarter to discuss the registrational trial design for our lead program.”
As part of the financing, PDS Biotech received an initial tranche of $25 million at the close. The company has an option to receive an additional $10 million. Each advance of the loan will be repaid in 48 monthly payments consisting of 24 monthly payments of interest only, followed by 24 monthly payments of principal and accrued interest. In connection with the financing, PDS Biotech issued Horizon warrants to purchase up to 4% of the loan amount, 381,625 of its common shares at an exercise price of $3.6685 per share. Proceeds will be used to support the ongoing clinical development of PDS0101 and other product candidates within the company’s pipeline and for general working capital purposes.