On December 27, 2022 TRACON Pharmaceuticals (Nasdaq: TCON), a clinical stage biopharmaceutical company utilizing a cost-efficient, CRO-independent product development platform to advance its pipeline of novel targeted cancer therapeutics and to partner with other life science companies, reported entry into an up to $30 million non-recourse financing agreement (Press release, Tracon Pharmaceuticals, DEC 27, 2022, View Source [SID1234625618]).

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"This non-dilutive funding provides for upfront capital along with potential post-award financing, so we may realize the value of a potential arbitration award once issued," said Charles Theuer, M.D., Ph.D., TRACON’s Chief Executive Officer. "We look forward to the announcement of the arbitration award that is expected in the first quarter of 2023."

$3.5 million will be funded before December 31, 2022. The additional $26.5 million, or a lesser amount based on the amount awarded, will be available subject to the award exceeding a threshold and satisfaction of other conditions set forth in the agreement, with 25% of the total being available to be funded after award announcement and the remainder available over a multi-year period. The non-recourse funding will be repaid upon collection of any award from I-Mab at varying rates that depend on the time elapsed from funding and certain other matters related to the arbitration.

The Company plans to use the funds to confirm and enforce any award and for working capital and general corporate purposes.