On August 24, 2022 PDS Biotechnology Corporation (Nasdaq: PDSB), a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer immunotherapies and infectious disease vaccines based on the Company’s proprietary Versamune and Infectimune T cell activating technologies, reported that it has entered into a debt financing agreement led by Horizon Technology Finance Corporation (NASDAQ: HRZN) ("Horizon") to provide up to a $35.0 million term loan (Press release, PDS Biotechnology, AUG 24, 2022, View Source [SID1234618607]).
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"We are pleased to partner with Horizon, a leading specialty finance company that has an extensive history of supporting innovative life science companies," said Frank Bedu-Addo, Chief Executive Officer of PDS Biotech. "We anticipate a number of important milestones across our oncology and infectious disease programs. This transaction immediately strengthens our balance sheet and provides the financial resources necessary to advance the company’s clinical pipeline. We look forward to our meeting with the U.S. Food and Drug Administration this quarter to discuss the registrational trial design for our lead program."
As part of the financing, PDS Biotech received an initial tranche of $25 million at the close. The Company has an option to receive an additional $10 million. Each advance of the loan will be repaid in 48 monthly payments consisting of 24 monthly payments of interest only, followed by 24 monthly payments of principal and accrued interest. In connection with the financing, PDS Biotech issued Horizon warrants to purchase up to 4% of the loan amount, 381,625 of its common shares at an exercise price of $3.6685 per share. Proceeds will be used to support the ongoing clinical development of PDS0101 and other product candidates within the company’s pipeline and for general working capital purposes.
Further information with respect to the debt financing agreement with Horizon will be contained in a current report to be filed on Form 8-K by PDS Biotechnology with the Securities and Exchange Commission.
Conference Call and Webcast
The conference call is scheduled for Thursday, August 25, 2022 at 8:00 AM EDT. Participants should dial 877-407-3088 (United States) or 201-389-0927 (International) and reference conference ID 13732262. To access the webcast, please use the following link. The event will be archived in the investor relations section of PDS Biotech’s website for six months.