Edge Therapeutics Announces Closing of $20 Million Debt Facility with Hercules Capital, Inc.
August 02 2016 - 5:30AM
Edge Therapeutics, Inc. (Nasdaq:EDGE), a clinical-stage
biotechnology company developing novel hospital-based therapies in
the management of acute, life-threatening conditions, today
announced the closing of a $20 million dual-tranche term loan with
Hercules Capital, Inc. (NYSE:HTGC). The term loan will be used to
refinance existing debt and for general corporate purposes.
An initial $15 million was drawn down at closing,
with an additional $5 million available, at Edge’s option, through
June 15, 2017. The term loan will mature on February 3, 2020.
“We are pleased to announce this new loan facility,
which increases our cash position at an attractive cost of capital,
enabling us to continue investing in our pipeline and executing our
corporate growth strategy,” said Andrew Einhorn, Chief Financial
Officer of Edge. “Importantly, we believe that this credit facility
will strengthen our financial position at the anticipated
completion of the pivotal, Phase 3 NEWTON 2 study of our lead
therapy EG-1962 for the treatment of aneurysmal subarachnoid
hemorrhage.”
"Hercules is pleased to extend and expand our
financing partnership with Edge at this important stage to allow
them to continue to advance their pipeline and achieve their growth
objectives," said Scott Bluestein, Chief Investment Officer at
Hercules Capital. “This further investment in Edge exemplifies our
steadfast principle of being there to support our portfolio
companies through multiple stages of development.”
About Edge Therapeutics, Inc.
Edge Therapeutics, Inc. is a clinical-stage
biotechnology company that discovers, develops and seeks to
commercialize novel, hospital-based therapies capable of
transforming treatment paradigms in the management of acute,
life-threatening neurological conditions. EG-1962, Edge’s lead
product candidate, has the potential to fundamentally improve
patient outcomes and transform the management of aneurysmal
subarachnoid hemorrhage, or aSAH, which is bleeding around the
brain due to a ruptured brain aneurysm.
About Hercules Capital,
Inc.
Hercules Capital, Inc. (NYSE:HTGC)
("Hercules") 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 broad
variety of technology, life sciences and sustainable and renewable
technology industries. Since inception (December 2003), Hercules
has committed more than $6.0 billion to over 350
companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing.
Forward-Looking Statements
This press release and any statements of
representatives of Edge related thereto that are not historical in
nature (including but not limited to upcoming milestones) contain,
or may contain, among other things, certain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include the
uses for the term loan funds, the credit facility strengthening
Edge’s financial position at the anticipated completion of the
pivotal, Phase 3 NEWTON 2 study and the timing of the commencement
of the Phase 3 Newton 2 study, and may include, without limitation,
statements with respect to Edge's plans, objectives, projections,
expectations and intentions and other statements identified by
words such as "projects," "may," "will," "could," "would,"
"should," "believes," "expects," "anticipates," "estimates,"
"intends," "plans," "potential" or similar expressions, including
statements with respect to the impact of the loan facility on Edge.
These statements are based upon the current beliefs and
expectations of Edge's management and are subject to significant
risks and uncertainties. Actual results may differ significantly
from those set forth in the forward-looking statements. These
forward-looking statements involve certain risks and uncertainties
that are subject to change based on various risk factors (many of
which are beyond Edge's control) as described under the heading
"Risk Factors" in Edge's filings with the United States Securities
and Exchange Commission.
Media Contact:
Laura Bagby
6 Degrees
Tel: 312-448-8098
Email: lbagby@6degreespr.com
Investor Contact:
Gregory Gin
Edge Therapeutics, Inc.
Tel: 1-800-208 EDGE (3343)
Email: ggin@edgetherapeutics.com
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