SAN DIEGO, Feb. 29, 2016 /PRNewswire/ -- Mast
Therapeutics, Inc. (NYSE MKT: MSTX), a biopharmaceutical company
developing novel, clinical-stage therapies for sickle cell disease
and heart failure, today announced that it has entered into an
amendment to its existing $15 million
debt facility with Hercules Capital, Inc. (NYSE: HTGC).
![Mast Therapeutics, Inc. logo. Mast Therapeutics, Inc. logo.](http://photos.prnewswire.com/prnvar/20120612/LA22456LOGO-a)
The amendment modified key dates in the loan and security
agreement to make them subsequent to the Company's anticipated
timing for top-line data of its Phase 3 clinical study of
vepoloxamer in patients with sickle cell disease, known as the EPIC
study. The prepayment condition now requires that
$10 million be repaid on July 31,
2016 if positive results from the EPIC study have not been
demonstrated to Hercules by that date. The capital raise
requirement was eliminated. In addition, the amortization
date was extended from June 1 to July 1,
2016, and, in the case of positive EPIC data by July 31, 2016, the amortization date will be
extended to March 1, 2017, provided
that no event of default has occurred. The Company expects
top-line data from the EPIC study in the second quarter of
2016.
In connection with the debt facility amendment, the Company paid
Hercules a fee of $37,500 and amended
its warrant agreement with Hercules to reduce the warrant exercise
price to $0.275, which has the effect
of providing the lender with the right to purchase an additional
748,337 shares of the Company's common stock in accordance with the
warrant agreement.
"Hercules continues to demonstrate a vested interest in our
success," said Brandi Roberts, the
Company's Chief Financial Officer. "We believe that this
amendment underscores Hercules' confidence in Mast and our
development programs."
"We are pleased to work with Mast and are looking forward to the
results from the EPIC study. Our financing will help support
Mast through this milestone and the future launch of vepoloxamer,"
said Anup Arora, Managing Director
at Hercules.
About Mast Therapeutics
Mast Therapeutics, Inc. is a
publicly traded biopharmaceutical company headquartered in
San Diego, California. The Company
is developing two clinical-stage investigational new drugs for
serious or life-threatening diseases and conditions. Vepoloxamer,
the Company's lead product candidate, is in Phase 3 clinical
development for the treatment of vaso-occlusive crisis in patients
with sickle cell disease and in Phase 2 clinical development for
the treatment of patients with heart failure. Enrollment in
the Company's 388-patient Phase 3 study of vepoloxamer in patients
with sickle cell disease, known as the EPIC study, was completed in
February 2016. Enrollment in the Company's Phase 2 study of
vepoloxamer in patients with chronic heart failure is
ongoing. AIR001, the Company's second product candidate, is
in Phase 2 clinical development for the treatment of patients with
heart failure with preserved ejection fraction (HFpEF). Enrollment
in a Phase 2a study of AIR001 in patients with HFpEF is ongoing and
AIR001 was recently selected by the Heart Failure Clinical Research
Network for evaluation in a 100-patient, multicenter, randomized,
double-blind, placebo-controlled, Phase 2 study in patients with
HFpEF. More information can be found on the Company's web
site at www.masttherapeutics.com. (Twitter: @MastThera)
Mast Therapeutics™ and the corporate logo are trademarks of Mast
Therapeutics, Inc.
About Hercules Capital, Inc.
Hercules Capital, Inc.
(NYSE: HTGC) is the leading and largest specialty finance company
focused on providing senior secured venture growth loans to
high-growth, innovative venture capital-backed companies in a
broadly diversified variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has
committed more than $5.7 billion to
over 335 companies and is the lender of choice for entrepreneurs
and venture capital firms seeking growth capital financing.
Companies interested in learning more about financing opportunities
should contact info@htgc.com, or call 650.289.3060.
Forward Looking Statements
Mast Therapeutics cautions
you that statements included in this press release that are not a
description of historical facts are forward-looking statements that
are based on the Company's current expectations and assumptions.
Such forward-looking statements include, but are not limited to,
statements relating to the Company's future financial condition,
prospects for successful development and commercialization of, the
Company's investigational drugs, vepoloxamer and AIR001, and
anticipated timing of achievement of development milestones, such
as announcement of clinical study data and commercial launch.
Among the factors that could cause or contribute to material
differences between the Company's actual results and the
expectations indicated by the forward-looking statements are risks
and uncertainties that include, but are not limited to: the risk
that the Company will be required to repay $10 million of its debt significantly earlier
than the scheduled maturity date if it does not achieve the
condition required to avoid early repayment; the risk that the
Company will have to begin making principal payments to Hercules on
July 1, 2016 and continue them
through the current maturity date of January
1, 2019, rather than meet the conditions for extension of
the interest-only period and maturity date; the risk that the
Company may be required to repay all $15
million of its debt upon occurrence of an event of default,
which includes any event that Hercules interprets as a material
adverse effect; the uncertainty of outcomes in ongoing and future
studies of the Company's product candidates and the risk that its
product candidates may not demonstrate adequate safety, efficacy or
tolerability in one or more such studies, including vepoloxamer in
the EPIC study; delays in the commencement or completion of
clinical studies, including as a result of difficulties in
obtaining regulatory agency agreement on clinical development plans
or clinical study design, opening trial sites, enrolling study
subjects, manufacturing sufficient quantities of clinical trial
material, being subject to a "clinical hold," and/or suspension or
termination of a clinical study, including due to patient safety
concerns or lack of funding; delays in clinical study closeouts,
including blinded data review and quality assurance procedures; the
risk that, even if current and planned clinical studies are
successful, the FDA or other regulatory agencies may determine they
are not sufficient to support a new drug application; the potential
that, even if clinical studies of a product candidate in one
indication are successful, clinical studies in another indication
may not be successful; the Company's dependence on third parties to
assist with important aspects of development of its product
candidates, including conduct of its clinical studies and supply
and manufacture of clinical trial material, and, if approved,
commercial product, and the risk that such third parties may fail
to perform as expected; the risk that the Company may be required
to repay its outstanding debt obligations on an accelerated basis
and/or at a time that could be detrimental to its financial
condition, operations and/or business strategy; risk associated
with the Company's ability to manage operating expenses and/or
obtain additional funding to support its operations on a timely
basis or on acceptable terms, or at all; the potential for the
Company to delay, reduce or discontinue current and/or planned
development activities, including clinical studies, or partner its
product candidates at inopportune times if it is unable to raise
sufficient additional capital as needed; the risk that, even if the
Company successfully develops a product candidate in one or more
indications, it may not realize commercial success and may never
achieve profitability; the risk that the Company is not able to
obtain and maintain effective patent coverage or other market
exclusivity protections for its products, if approved, without
infringing the proprietary rights of others; and other risks and
uncertainties more fully described in the Company's press releases
and periodic filings with the Securities and Exchange Commission.
The Company's public filings with the Securities and Exchange
Commission are available at www.sec.gov.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date when made. Mast
Therapeutics does not intend to revise or update any
forward-looking statement set forth in this press release to
reflect events or circumstances arising after the date hereof,
except as may be required by law.
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SOURCE Mast Therapeutics, Inc.