Geron details status of term loan facility with Silicon Valley

By Mary-Katherine Stinson

Lexington, Ky., March 13 – Geron Corp. said it may not be able to draw down the $55 million that remains available under its loan agreement with Hercules Capital, Inc. and Silicon Valley Bank, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, on Sept. 30, 2020 Geron entered into the term loan facility with Hercules and Silicon Valley for up to $75 million which was increased on June 30, 2022 to $125 million available in a series of tranches subject to certain terms and conditions.

As of Dec. 31, a total of $50 million had been drawn with $55 million still available.

Due to the closure of Silicon Valley Bank by the California Department of Financial Protection and Innovation on March 10, Geron stated it is possible it will not be able to access any additional funding from the term loan even if the company meets the conditions set forth in the agreement.

Geron holds no cash deposits or securities at Silicon Valley Bank.

In the release, Geron also said that its existing cash, cash equivalents, restricted cash and current and noncurrent marketable securities, including the net cash proceeds from Geron’s recently closed underwritten public offering in January and the cash proceeds from the exercise of warrants Geron received in the January and February, will be sufficient to fund the company’s projected operating requirements through the end of the third quarter of 2025.

Geron is a clinical stage biopharmaceutical company based in Foster City, Calif.

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