TRACON Pharmaceuticals Inc (NASDAQ:TCON) announced a non-dilutive $35 million long-term credit facility with Runway Growth Capital LLC to support its ongoing pivotal ENVASARC trial to treat cancer and for general corporate purposes.
The biopharmaceutical company said $10 million of the $35 million loan had been funded at closing, and the additional $25 million available could be funded upon reaching “certain clinical milestones and at Runway’s discretion.” “.
“This non-dilutive funding extends our cash trail to support the robust build-up of the pivotal ENVASARC trial pending completion of the TJ4309 Phase 1 clinical trial which triggers I- Mab for $9 million as well as the outcome of the arbitration linkage with I-Mab, both of which are expected this quarter,” TRACON CEO Charles Theuer said in a statement.
“We are excited to partner with Runway, which seeks long-term relationships with late-stage life science companies that will benefit from non-dilutive capital.”
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Igor DaCruz, General Manager of Life Sciences at Runway, added, “We are excited to enter this facility with TRACON to help them achieve their goal of bringing to market envafolimab, the first sub-medicinal checkpoint inhibitor. in the world, in the underserved indication of sarcoma. .”
The loan has an “interest only” period of 24 months followed by 24 monthly principal and interest payments.
As part of the debt financing, TRACON issued Runway warrants to purchase up to 150,753 of its shares at $1.99 per share.
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