Daily News: July 6, 2015

Palatin Closes $10MM Venture Loan with Horizon Technology

Palatin Technologies announced the closing of a $10 million venture loan led by Horizon Technology Finance. The debt facility, which includes an interest-only payment period for the first 18 months, is a four-year senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR (floor of 0.50%) plus 8.50%. The lenders also received Series G warrants to purchase 549,450 shares of Palatin’s common stock.

Palatin also announced it closed on a private placement of Series E warrants to purchase 21,917,808 shares of its common stock and Series F warrants to purchase 2,191,781 shares of its common stock. Certain funds managed by QVT Financial invested $5 million and another accredited investment fund invested $15 million. The funds paid $0.90 for each Series E warrant and $0.125 for each Series F warrant, resulting in gross proceeds to Palatin of $20 million, with net proceeds, after deducting estimated offering expenses, of approximately $19.8 million.

“With these financing transactions, we expect to have sufficient funding to complete our pivotal Phase 3 clinical trials on bremelanotide for female sexual dysfunction and, assuming results are positive, complete required ancillary studies preparatory to filing a regulatory application for approval of bremelanotide by the Food and Drug Administration,” said Stephen T. Wills, chief financial officer and chief operating officer of Palatin. “These transactions should give us sufficient funding to reach important inflection points for bremelanotide and other key product areas.”