Stealth BioTherapeutics gets $25 million debt facility via Horizon

By Marisa Wong

Los Angeles, Oct. 4 – Stealth BioTherapeutics Corp. announced it completed a $25 million long-term debt facility led by Horizon Technology Finance Corp.

Stealth has drawn down $15 million under the facility with an additional $10 million available upon achievement of a predetermined milestone, according to a press release.

Each advance will be repaid in 48 monthly payments consisting of 18 monthly payments of interest only, followed by 30 monthly payments of principal and accrued interest. The interest-only period may be extended to 24 months, contingent upon Stealth achieving certain milestones, followed by 24 monthly payments of principal and accrued interest.

In connection with the financing, Stealth issued Horizon warrants to purchase up to 13,636,364 ordinary shares at an exercise price of $0.11 per share.

Of the initial drawdown, $5.7 million was used to pay off Stealth’s existing term loan with Hercules Capital. Remaining proceeds will be used to support the ongoing clinical development of key investigational product candidates within Stealth’s pipeline and for general working capital purposes.

Boston-based Stealth is a clinical-stage biotechnology company focused on the discovery, development, and commercialization of novel therapies for diseases involving mitochondrial dysfunction.

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