ADC Therapeutics, a commercial-stage biotechnology company that develops novel antibody drug conjugates (ADCs) to treat hematological malignancies and solid tumors, received the $50 million second tranche under its convertible credit facility with Deerfield Partners. Under the terms of the facility agreement dated April 24, 2020, Deerfield agreed to provide up to $115 million in financing consisting of two separate tranches to ADC Therapeutics. The first $65 million was received upon completion of the company’s initial public offering in May 2020, and the second tranche of $50 million has now been received following the recent FDA accelerated approval of ZYNLONTA (loncastuximab tesirine-lpyl).
“Following the recent approval of ZYNLONTA, we are pleased to further strengthen our balance sheet with the $50 million second tranche draw down,” Chris Martin, CEO of ADC Therapeutics, said. “These funds will support the continued execution of our launch and advancement of our deep pipeline of next-generation ADCs.”
Pursuant to a related registration rights agreement with Deerfield, ADC Therapeutics will file a registration statement on Form F-3 with the U.S. Securities and Exchange Commission within 15 days. In the event that in the future Deerfield elects to exercise its conversion option with respect to the convertible notes issued under the facility agreement, this registration statement will allow Deerfield to sell the resulting shares. ADC Therapeutics will not sell any securities under this registration statement.
