On June 24, 2022 (the "Closing Date"), G1 Therapeutics, Inc. (the "Company"), as borrower, and Hercules Capital, Inc. and certain of its affiliates (collectively, the "Lender") reported that entered into a third amendment (the "Third Amendment") to amend that certain loan and security agreement, dated as of May 29, 2020, as amended by the First Amendment to Loan and Security Agreement, dated as of March 31, 2021 (the "First Amendment") and the Second Amendment to Loan and Security Agreement, dated as of November 1, 2021 (the "Second Amendment"); the loan and security agreement, as amended by the First Amendment, the Second Amendment and the Third Amendment, the "Loan and Security Agreement"), under which the Lender has agreed to lend the Company up to $150.0 million, to be made available in a series of tranches, subject to specified conditions (Filing, 8-K, G1 Therapeutics, JUN 24, 2022, View Source [SID1234616242]). The total loan amount outstanding is $75.0 million. The Third Amendment extends the time for drawing the Tranche 1D Advance (as defined in the Loan and Security Agreement) of up to $25.0 million from September 15, 2022 to December 31, 2022.

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The Third Amendment adds a minimum cash covenant whereby the Company must maintain unrestricted cash equal to at least 50% of the outstanding debt, and such percentage shall decrease upon the Company achieving specified net product revenue of COSELA. The Third Amendment further provides for a minimum revenue covenant that, beginning August 15, 2022, with the reporting of the financial results for the second fiscal quarter ended June 30, 2022, and tested monthly, the Company must have achieved net product revenue of COSELA of at least 80% of the amounts projected in the Company’s forecast. Testing of the minimum revenue covenant shall be waived at any time in which either (a) the Company’s market capitalization exceeds $750.0 million and the Company maintains unrestricted cash equal to at least 50% of the total amounts funded, or (b) the Company maintains unrestricted cash equal to at least 100% of the total amounts funded.

The foregoing description is only a summary of certain provisions of the Third Amendment and is qualified in its entirety by reference to the Third Amendment, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ending June 30, 2022 and will be incorporated by reference herein.