PDS Biotech closes $35 million investment loan with Horizon

Chicago, Aug. 24 – PDS Biotechnology Corp. closed on a debt financing agreement on Wednesday led by Horizon Technology Finance Corp. for a $35 million term loan, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The deal includes an initial $25 million tranche. There is an option for an additional $10 million.

A more detailed breakdown is that the first $25 million includes a $7.5 million loan A, a $10 million loan B, a $3.75 million loan C and a $3.75 million loan D. Loan E and loan F are $5 million each and are currently uncommitted and are subject to lender discretion before July 31, 2023.

Interest will be at the Prime rate plus 575 basis points.

Each advance will be repaid in 48 monthly payments, consisting of 24 monthly payments of interest only, followed by 24 months of payments of principal and interest.

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.

PDS Biotech is a clinical-stage immunotherapy company based in Florham Park, N.J.

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