Genocea Secures Debt Facility from Hercules Technology Growth Capital of up to $27 Million
November 21 2014 - 7:30AM
Business Wire
Genocea Biosciences, Inc. (NASDAQ:GNCA), a company
developing T cell-directed vaccines and immunotherapies, today
announced that it has entered into a loan and security agreement
with Hercules Technology Growth Capital, Inc. (NYSE:HTGC) for a
term loan of up to $27.0 million.
"This additional access to capital enhances our financial
flexibility during a period when we expect to announce data from
both of our lead clinical programs,” said Jonathan Poole,
chief financial officer of Genocea. “We are pleased to be working
with the leading specialty finance company to help further our
growth and support the continued development of our pipeline of
novel product candidates. Hercules understands our business and has
a strong conviction in our corporate strategy.”
The proceeds of the initial draw of $12.0 million will be used
to repay Genocea’s existing term loan facility and to provide
additional working capital for general corporate purposes. Genocea
can draw up to an additional $5.0 million at its option through
June 30, 2015. Two further tranches of $5.0 million each can be
drawn down at Genocea’s option on or prior to December 15, 2015
subject to the achievement of certain clinical and corporate
milestones.
Additionally, Genocea entered into an equity rights letter
agreement with Hercules pursuant to which Hercules purchased
223,463 shares of Genocea’s common stock at $8.95 per share, the
closing price of Genocea’s common stock as reported on The NASDAQ
Global Market on November 19, 2014.
Full details of the terms of the loan and equity rights letter
agreement are contained in the Form 8-K which Genocea has filed
today with the Securities and Exchange Commission.
About Hercules Technology Growth Capital, Inc.:Hercules
Technology Growth Capital, Inc. (NYSE: HTGC) ("Hercules") is the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology industries, at
all stages of development. Since inception (December 2003),
Hercules has committed more than $4.6 billion to over 300 companies
and is the lender of choice for entrepreneurs and venture capital
firms seeking growth capital financing.
Hercules' common stock trades on the New York Stock Exchange
(NYSE) under the ticker symbol "HTGC."
In addition, Hercules has three outstanding bond issuances of
7.00% Senior Notes due April 2019, 7.00% Senior Notes due September
2019, and 6.25% Senior Notes due July 2024, which trade on the NYSE
under the symbols "HTGZ", "HTGY," and "HTGX," respectively.
Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call
650.289.3060.
About GenoceaGenocea is harnessing the power of T cell
immunity to develop life-changing vaccines and immunotherapies. T
cells are increasingly recognized as a critical element of
protective immune responses to a wide range of diseases, but
traditional discovery methods have proven unable to identify the
targets of such protective immune response. Using ATLAS™, its
proprietary technology platform, Genocea identifies these targets
to potentially enable the rapid development of medicines to address
critical patient needs. Genocea's pipeline of novel clinical stage
T cell-enabled product candidates includes GEN-003 for HSV-2
therapy, GEN-004 to prevent infections caused by pneumococcus, and
earlier-stage programs in chlamydia, HSV-2 prophylaxis, malaria and
cancer immunotherapy. For more information, please visit the
company's website at www.genocea.com.
Forward Looking StatementsStatements herein relating to
future business performance, conditions or strategies and other
financial and business matters, including expectations regarding
clinical developments and the ability of Genocea to draw additional
amounts under its debt facility, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act.
Genocea cautions that these forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time. Factors that may cause actual results to differ materially
from the results discussed in the forward-looking statements or
historical experience include risks and uncertainties, including
Genocea’s ability to progress any product candidates in preclinical
or clinical trials; the scope, rate and progress of its preclinical
studies and clinical trials and other research and development
activities; clinical trial results; current results may not be
predictive of future results; even if the data from preclinical
studies or clinical trials is positive, the product may not prove
to be safe and efficacious; Genocea’s ability to enter into future
collaborations with industry partners and the government and the
terms, timing and success of any such collaboration; Genocea’s
ability to make additional draws under its debt facility, the cost
of filing, prosecuting, defending and enforcing any patent claims
and other intellectual property rights; Genocea’s ability to obtain
rights to technology; competition for clinical resources and
patient enrollment from drug candidates in development by other
companies with greater resources and visibility; its ability to
obtain adequate financing in the future through product licensing,
co-promotional arrangements, public or private equity or debt
financing or otherwise; general business conditions; competition;
business abilities and judgment of personnel; the availability of
qualified personnel and other factors set forth under “Risk
Factors” in Genocea’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2013 and other filings with the Securities
and Exchange Commission (the “SEC”). Further information on the
factors and risks that could affect Genocea’s business, financial
conditions and results of operations is contained in Genocea’s
filings with the SEC, which are available at www.sec.gov. These forward-looking statements
speak only as of the date of this press release and Genocea assumes
no duty to update forward-looking statements.
For media:Spectrum Science CommunicationsMegan Lustig,
202-955-6222mlustig@spectrumscience.comorFor
investors:Genocea BiosciencesBob Farrell,
617-674-8261Bob.Farrell@genocea.com
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jul 2023 to Jul 2024