G1 Therapeutics lines up $100 million in four tranches via Hercules

By Wendy Van Sickle

Columbus, Ohio, June 1 – G1 Therapeutics, Inc. entered into a debt financing agreement with Hercules Capital, Inc. for up to $100 million available in four tranches, according to a news release.

The first tranche of $30 million, of which the company plans to use $20 million immediately, is available at closing with the remaining $10 million available through March 31, 2021.

The second tranche of $20 million will be available upon achievement of U.S. Food and Drug Administration approval of trilaciclib in small cell lung cancer and initiation of a registrational trial in metastatic colorectal cancer, to be available from Jan. 1, 2021 through Dec. 15, 2021.

An additional tranche of $30 million will be available from April 1, 2021 through Dec. 31, 2022, subject to some conditions.

A final tranche of $20 million will be available prior to Dec. 31, 2022 to support strategic initiatives, subject to future approvals by Hercules.

G1 plans to use the proceeds to fund commercialization and further development of trilaciclib, its investigational therapy designed to improve outcomes for people with cancer treated with chemotherapy.

The term loan has a 24-month interest only period, extendible up to 42 months upon achievement of certain conditions. Maturity of the loan is 48 months from date of closing, extendible up to 60 months upon achievement of certain milestones.

G1 is a clinical-stage biopharmaceutical company focused on the discovery, development and delivery of innovative therapies that improve the lives of those affected by cancer.

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