Deal inked with Silicon Valley Bank; $10 million tranche has settled
By Devika Patel
Knoxville, Tenn., July 31 – Fate Therapeutics, Inc. said it arranged a $20 million 6.9%, debt financing with Silicon Valley Bank. The company has already drawn $10 million.
The company may access a second tranche of up to $10 million through the end of 2014. There is no warrant coverage for the first tranche and 2% warrant coverage for the second tranche.
Proceeds will be used for general working capital purposes including expansion of the company's research on therapeutic applications of human induced pluripotent stem cell-derived hematopoietic cells and myogenic progenitor cells.
“This debt financing further secures the necessary cash resources to clinically validate our lead product candidate PROHEMA across multiple disease franchises including adult and pediatric patients with hematologic malignancies and pediatric patients with inherited metabolic disorders,” chief financial and operating officer J. Scott Wolchko said in a press release.
“The additional capital also enables the company to invest in, and achieve a number of important milestones in connection with, its pipeline of disease-altering hematopoietic- and muscle-based cellular therapeutics.”
The clinical-stage biopharmaceutical company is based in San Diego.
| Issuer: | Fate Therapeutics, Inc.
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| Issue: | Debt financing
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| Amount: | $20 million
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| Coupon: | 6.9%,
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| Warrants: | 2% coverage on second tranche
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| Investor: | Silicon Valley Bank
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| Settlement date: | July 31 (for $10 million)
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| Stock symbol: | Nasdaq: FATE
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| Stock price: | $6.14 at close July 30
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| Market capitalization: | $123.7 million
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