- A first tranche of $20 million drawn at the closing of the loan
- Funds ongoing clinical development of key investigational product candidates
- Funding provides flexibility and extends track with multiple clinical catalysts expected in 2021
ROCKVILLE, Md. and CHESTERBROOK, Pa., June 07, 2021 (GLOBE NEWSWIRE) — Cerecor Inc. (NASDAQ: CERC), a biopharmaceutical company aiming to become a leader in the development and commercialization of treatments for rare and orphan diseases, today announced that it has entered into a debt financing agreement led by Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”) to provide up to $35.0 million in term loans.
“We are delighted to partner with Horizon, a leading specialty finance company with a long history of supporting innovative life science companies,” said Michael Cola, President and CEO of Cerecor. “During 2021, we anticipate a number of important data reads on our product candidates in immunology, oncology and rare genetic diseases. This transaction immediately strengthens and expands our financial resources to advance our clinical pipeline to these key development milestones. »
Gérald A. Michaud, President of Horizon said: “We are delighted to provide this financing to Cerecor and are confident in the Company’s business strategy. We look forward to seeing the Company reach its critical development milestones for its orphan and rare disease therapies in development. This investment in Cerecor provides another example of our ability to finance life sciences companies through multiple stages of development and through various value inflection points.
$20 million of the $35 million loan was funded at closing. The remaining $15 million could be funded when Cerecor reaches certain predetermined milestones. Each loan advance will be repaid in 42 monthly installments consisting of 18 monthly installments of interest only, followed by 24 monthly installments of principal and accrued interest, and will be payable monthly in arrears. The interest-only period can be extended to 24 months subject to Cerecor reaching certain milestones. As part of the financing, Cerecor issued warrants to Horizon to purchase up to 403,844 of its common shares at an exercise price of $2.60 per share. Proceeds will be used to support ongoing clinical development of key investigational product candidates within its pipeline and for general working capital purposes.
Jefferies acted as exclusive arranger and financial advisor to Cerecor in this transaction.
Further information regarding the debt financing agreement with Horizon will be contained in a current report to be filed on Form 8-K by Cerecor with the Securities and Exchange Commission.
Cerecor is a biopharmaceutical company aiming to become a leader in the development and commercialization of treatments for rare and orphan diseases. The company is advancing its portfolio of innovative clinical-stage therapies that address unmet patient needs in rare and orphan diseases. The Company’s rare disease pipeline includes CERC-801, CERC-802 and CERC-803, which are in development for congenital glycosylation disorders, and CERC-006, an oral mTORc1/c2 inhibitor in development for the treatment complex lymphatic malformations. The company is also developing two monoclonal antibodies, CERC-002 and CERC-007. CERC-002 targets the cytokine LIGHT (TNFSF14) and is in clinical development for the treatment of severe pediatric Crohn’s disease and COVID-19 acute respiratory distress syndrome. CERC-007 targets the cytokine IL-18 and is in clinical development for the treatment of Still’s disease (adult Still’s disease (ASD) and systemic juvenile idiopathic arthritis (sJIA)) and multiple myeloma (MM) . CERC-006, 801, 802, and 803 have all received Orphan Drug Designation and Rare Pediatric Disease Designation, making all four eligible for priority review voucher after FDA approval.
For more information about Cerecor, please visit www.cerecor.com.
About Horizon Technology Financing
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture-backed companies in the technology, life sciences, health information and services and sustainability. Horizon’s investment objective is to maximize the return on its investment portfolio by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when these borrowed investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These forward-looking statements are subject to significant risks and uncertainties that are subject to change based on a variety of factors (many of which are beyond Cerecor’s control), which could cause actual results to differ from the forward-looking statements. These statements may include, but are not limited to, statements regarding Cerecor’s plans, goals, projections, expectations and intentions and other statements identified by words such as “plans”, “may”, “could”, ” will”, “could”, “would”, “should”, “continue”, “seek”, “aim”, “predict”, “believe”, “expect”, “anticipate”, “estimate”, “intends”, “plans”, “potential”, or similar expressions (including their use in the negative), or through discussions of future matters such as: the development of product candidates or products ; the timing and success of trial results and regulatory review; the attributes and potential benefits of product candidates; and other statements that are not historical. These statements are based on the current beliefs and expectations of Cerecor’s management, but are subject to important risks and uncertainties, including: drug development costs, timing and other risks, including dependence on regard to investigators and the recruitment of patients in clinical trials, which could be slowed down by the COVID-19 pandemic; regulatory risks; Cerecor’s cash position and the potential need for it to raise additional capital; general economic and market risks and uncertainties, including those caused by the COVID-19 pandemic; and other risks detailed in Cerecor’s filings with the Securities and Exchange Commission. Actual results may differ from those set forth in forward-looking statements. Except as required by applicable law, Cerecor expressly disclaims any obligation or undertaking to release any update or revision to any forward-looking statement contained herein to reflect any change in Cerecor’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
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