enGene details amendment, expansion to Hercules facility

By William Gullotti

Buffalo, N.Y., Dec. 28 – enGene Holdings Inc. amended its $50 million loan agreement with Hercules Capital, Inc. on Dec. 22, according to an 8-K filing with the Securities and Exchange Commission.

Under the amended agreement, enGene borrowed an initial $22.5 million term advance. Subject to certain clinical milestones, financial milestones and date restrictions, additional term tranches may be borrowed to expand the facility by up to $27.5 million.

As previously reported, the amended agreement matures Jan. 1, 2028.

Borrowings bear interest at the greater of the prime rate plus 75 basis points and a 9.25% fixed rate. In addition, term borrowings will also carry 1.15% PIK interest that will be added to the outstanding principal on each monthly interest payment date.

The company has an interest-only repayment period and amortization date that are determined via similar conditions and restrictions as those that pertain to additional term borrowings.

The company may elect to prepay all, but not less than all, of the outstanding borrowings by paying the entire principal balance and all accrued and unpaid interest, plus a prepayment charge determined by the date of prepayment.

Proceeds will be used for working capital and general corporate purposes, including about $8.6 million of the initial $22.5 million borrowing that was allocated to refinance borrowings under the original loan agreement with Hercules from Dec. 30, 2021.

In connection with the amended agreement, the company agreed to issue warrants with an exercise price of $7.21 and an exercise period of seven years with each subsequent term advance. The number of warrants to be issued will be equal to 2% of the borrowing amount divided by the exercise price.

At closing, enGene issued 62,413 warrants with the $22.5 million tranche 1 term advance. The maximum number of warrants that could be issued is 138,696.

enGene is a clinical-stage biotechnology company based in Boston and Montreal.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.