Aclaris Therapeutics, a physician-led biopharmaceutical company, entered into a loan and security agreement with Silicon Valley Bank pursuant to which Aclaris has borrowed $11.0 million.
“This financing allows us to strengthen our financial position by extending our cash runway and to continue to execute on our refocused business strategy as planned,” Dr. Neal Walker, president and CEO of Aclaris, said.
Aclaris believes the proceeds from the loan, in combination with its existing cash, cash equivalents and marketable securities, will be sufficient to fund its operations into Q1/22.
The term loan requires interest only payments beginning April 1, 2020 and continuing through March 1, 2022, followed by monthly installments of principal, plus monthly payments of accrued interest, starting on April 1, 2022 and continuing through March 1, 2024. The loan is secured by substantially all of Aclaris’ assets, other than intellectual property.
In connection with the term loan, Aclaris issued Silicon Valley Bank a warrant to purchase up to 460,251 shares of Aclaris’ common stock at an initial exercise price of $0.956 per share. The warrant became immediately exercisable in full upon the funding of the loan.
