Asset manager Pivot Financial entered into a one-year credit agreement with biotech company Kane Biotech, providing the company with a $1.48 million non-revolving term loan
In connection with the facility, Kane Biotech entered into a general security agreement in favour of Pivot on terms and conditions customary in such transactions. The credit facility shall be used by Kane Biotech for: (i) funding research and development relating to eligible government reimbursable expenditures, (ii) expenses related to STEM Animal Health Inc and (iii) general working capital purposes.
“This non-dilutive credit facility has been secured at an opportune time for Kane Biotech as it enters manufacturing, animal study and human study phases of its DispersinB wound care program in the coming months. These phases of work will require significant cash outlays prior to funding being subsequently received from existing Western Economic Diversification Canada Business Scale-Up and Productivity and U.S. Department of Defense Medical Technology Enterprise Consortium Research Project Award funding programs,” Ray Dupuis, CFO of Kane Biotech, said.
“We’re pleased to welcome Kane to our family of clients and look forward to working with the management team as they continue to commercialize their impressive ‘made in Canada’ portfolio of intellectual property.” Dan Flaro, president of Pivot, said.