On March 31, 2020, Bellicum Pharmaceuticals, Inc. (the "Company") reported that it has entered into a Second Amendment to Loan and Security Agreement (the "Amendment") with Oxford Finance LLC (the "Collateral Agent") and the lenders listed on Schedule 1.1 to the Loan Agreement (as defined below) or otherwise party thereto from time to time (the "Lenders"), effective as of March 31, 2020, related to the Company’s Loan and Security Agreement, dated as of December 21, 2017, as amended on December 24, 2019 (the "Loan Agreement"), by and among the Company, the Collateral Agent and the Lenders, in connection with the proposed sale of certain assets of the Company pursuant to the previously announced asset purchase agreement, dated as of January 21, 2020 (the "Asset Purchase Agreement"), by and between the Company and The University of Texas M.D. Anderson Cancer Center (Filing, 8-K, Bellicum Pharmaceuticals, MAR 31, 2020, View Source [SID1234556144]). Pursuant to the Amendment, the Loan Agreement was amended to, among other things: (i) provide for the Collateral Agent’s and the Lenders’ consent to the Company’s consummation of such asset sale pursuant to the Asset Purchase Agreement, provided such sale occurs on or prior to June 30, 2020; (ii) if such asset sale occurs on or prior to June 30, 2020, extend the interest-only period through as late as July 31, 2021; (iii) if the proposed asset sale closes on or prior to June 30, 2020, provide for a partial repayment to the Lenders of a significant percentage of the proceeds of the asset sale that varies in accordance with the timing of closing and the associated amortization schedule, a portion of which will be applied as partial payment of the Final Payment Percentage (as defined in the Loan Agreement); and (v) grants the Lenders and the Collateral Agent a security interest in the Company’s intellectual property as of the date of the Amendment, in each case as set forth in the Amendment. In the event the proposed asset sale does not close on or prior to June 30, 2020, the Amendment provides that the Company, the Collateral Agent and the Lenders shall renegotiate the foregoing terms.
The foregoing description of the Amendment is only a summary and is qualified in its entirety by reference to the Amendment. The Company intends to file a copy of the Amendment as an exhibit to its Quarterly Report on Form 10-Q for its fiscal quarter ending March 31, 2020.
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