atai Life Sciences N.V. (Nasdaq: ATAI) (“atai”), a clinical-stage
biopharmaceutical company aiming to transform the treatment of
mental health disorders, today announced that the company has
entered into a term loan facility for up to $175 million with
Hercules Capital, Inc. (NYSE: HTGC).
“The non-dilutive capital from this term loan facility combined
with the cash already on our balance sheet further reinforces
atai’s financial strength, providing us with strategic flexibility
as we build a leading mental health company committed to addressing
the significant unmet patient needs in neuropsychiatry,” said
Florian Brand, Chief Executive Officer and Co-Founder of atai.
“While we continue to execute on our diversified pipeline of
differentiated drug candidates, we look forward to several
anticipated near-term catalysts across our key programs, including
Phase 2a data of PCN-101 in treatment-resistant depression towards
the end of this year.”
“Hercules is pleased to partner with atai as it advances a
pipeline of novel assets designed to bring new treatment options to
patients suffering from mental health disorders,” said Janice
Bourque, Managing Director at Hercules Capital. “The significant
commitment from Hercules is intended to help atai execute on its
important mission and reflects our dedication to financing
innovative life science companies,” added Michael Dutra, Managing
Director at Hercules Capital.
Under the terms of the $175 million loan facility, $15 million
was drawn at closing, with an additional $20 million available to
be drawn at atai’s option by March 15, 2023, and thereafter, an
additional $25 million available to be drawn at atai’s option by
December 15, 2023. The remaining $115 million becomes available in
tranches through March 31, 2025, subject to the satisfaction of
certain conditions. The loan facility bears interest at a
calculated prime-based variable rate currently at 10.05% and
matures 48 months from closing, which may be extended to 54 months
upon achievement of certain performance milestones. The interest
only period is 30 months from closing, which may be extended to up
to 42 months upon achievement of certain milestones.
Additional details of the loan agreement will be filed with the
Securities and Exchange Commission on a Current Report on Form
8-K.
Latham & Watkins served as legal counsel to atai. Morrison
& Foerster LLP served as legal counsel to Hercules Capital.
About atai Life Sciences
atai Life Sciences is a clinical-stage biopharmaceutical company
aiming to transform the treatment of mental health disorders.
Founded in 2018 as a response to the significant unmet need and
lack of innovation in the mental health treatment landscape, atai
is dedicated to acquiring, incubating, and efficiently developing
innovative therapeutics to treat depression, anxiety, addiction,
and other mental health disorders.
By pooling resources and best practices, atai aims to
responsibly accelerate the development of new medicines across its
companies to achieve clinically meaningful and sustained behavioral
change in mental health patients.
atai's vision is to heal mental health disorders so that
everyone, everywhere can live a more fulfilled life. For more
information, please visit https://www.atai.life/.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended (the “Securities Act”), and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The words “believe,” “may,” “will,” “estimate,” “continue,”
“anticipate,” “intend,” “expect,” “anticipate,” “initiate,”
“could,” “would,” “project,” “plan,” “potentially,” “preliminary,”
“likely,” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain these words. All statements contained in this
press release other than statements of historical fact should be
considered forward-looking statements, including without limitation
statements regarding the anticipated benefit of the term loan
facility funding and achievement of related milestone conditions,
and the plans and objectives of management for future operations
and capital expenditures.
The forward-looking statements in this press release are neither
promises nor guarantees, and you should not place undue reliance on
these forward-looking statements. We have based these
forward-looking statements largely on our current expectations and
projections about future events and trends that we believe may
affect our financial condition, results of operations, business
strategy, short-term and long-term business operations and
objectives, and financial needs. These forward-looking statements
are subject to a number of risks, uncertainties, and assumptions
that could cause actual results to differ materially from those
expressed or implied by the forward-looking statements, including
without limitation: we are a clinical-stage biopharmaceutical
company and have incurred significant losses since our inception,
and we anticipate that we will continue to incur significant losses
for the foreseeable future; we will require substantial additional
funding to achieve our business goals, and if we are unable to
obtain this funding when needed and on acceptable terms, we could
be forced to delay, limit or terminate our product development
efforts; our limited operating history may make it difficult to
evaluate the success of our business and to assess our future
viability; we have never generated revenue and may never be
profitable; clinical and preclinical development is uncertain, and
our preclinical programs may experience delays or may never advance
to clinical trials; we rely on third parties to assist in
conducting our clinical trials and some aspects of our research and
preclinical testing, and those clinical trials, including progress
and related milestones, may be impacted by several factors
including the failure by such third parties to meet deadlines for
the completion of such trials, research, or testing, changes to
trial sites and other circumstances; we cannot give any assurance
that any of our product candidates will receive regulatory
approval, which is necessary before they can be commercialized;
third parties may claim that we are infringing, misappropriating or
otherwise violating their intellectual property rights, the outcome
of which would be uncertain and may prevent or delay our
development and commercialization efforts; and a pandemic,
epidemic, or outbreak of an infectious disease, such as the
COVID-19 pandemic, may materially and adversely affect our
business, including our preclinical studies, clinical trials, third
parties on whom we rely, our supply chain, our ability to raise
capital, our ability to conduct regular business and our financial
results. These and other important factors described in the section
titled “Risk Factors” in our most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission (“SEC”), as
updated by our subsequent filings with the SEC, may cause our
actual results, performance, or achievements to differ materially
and adversely from those expressed or implied by the
forward-looking statements. Any such forward-looking statements
represent management’s estimates as of the date of this press
release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
Contact Information
Investor Contact:Stephen BardinDeputy Chief Financial
OfficerEmail: IR@atai.life
Media Contact:Allan MalievskySenior Director, External Affairs
Email: PR@atai.life
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