Celsion Corporation Restructures its Strategic Loan Facility
September 02 2020 - 8:00AM
Celsion Corporation (NASDAQ: CLSN) (“Celsion” or “the Company”), an
oncology drug development company, today announced that on August
28, 2020 it entered into an amendment to its existing $10 million
loan agreement with Horizon Technology Finance Corporation (NASDAQ:
HRZN) ("Horizon"). Consistent with its target to leverage equity
capital, the Company elected to reduce its outstanding debt under
the loan by $5 million and restructure the terms of the remaining
$5 million loan balance.
The Company’s new $5 million loan is in the form
of secured indebtedness bearing interest at a calculated
LIBOR-based variable rate. Payments under the loan agreement are
interest only for the first 12 months through July 2021, followed
by a 21-month amortization period of principal and interest through
the scheduled maturity date of April 2023. In conjunction with the
amended loan agreement, Celsion issued to Horizon warrants
exercisable into 247,525 shares of Celsion’s common share at an
exercise price of $1.01 per share. Warrants previously issued to
Horizon exercisable into 95,057 shares at an exercise price of
$2.63 per share were cancelled.
The Company plans to use the proceeds from this
loan for working capital and advancement of its product pipeline,
including GEN-1 for the treatment of newly diagnosed ovarian
cancer, as well as other strategic initiatives designed to broaden
its product pipeline.
"This new loan wisely leverages our equity
capital and supports our product development initiatives with far
less dilution to our stockholders. Reducing our debt substantially
lowers our debt service," said Michael H. Tardugno, Celsion's
chairman, president and chief executive officer. "Adjusting for the
debt repayment, Celsion’s cash position at the end of the second
quarter of 2020 was $20.5 million. Proceeds from the sale of our
New Jersey net operating losses will add an additional $1.8 million
to cash resources, now expected later this year. Along with the
restructured loan we have the financial flexibility to meet several
key, value-driving milestones, including the completion of
enrollment of our Phase I/II ovarian cancer trial with GEN-1 (the
OVATION 2 Study). We appreciate Horizon’s support and its belief in
the Celsion management team."
Jerry Michaud, President of Horizon, said, "We
look forward to watching the Company’s progress in achieving its
critical milestones, including the future clinical development of
GEN-1 for ovarian cancer, and its efforts to expand its product
portfolio.”
About Celsion
Corporation
Celsion is a fully integrated oncology company
focused on developing a portfolio of innovative cancer treatments,
including immunotherapies, DNA-based therapies and directed
chemotherapies. The Company’s product pipeline includes GEN-1, a
DNA-based immunotherapy for the localized treatment of ovarian
cancer and ThermoDox®, a proprietary heat-activated liposomal
encapsulation of doxorubicin, currently in Phase III development
for the treatment of primary liver cancer and in development for
other cancer indications. Celsion has two feasibility stage
platform technologies for the development of novel nucleic
acid-based immunotherapies and other anti-cancer DNA or RNA
therapies. Both are novel synthetic, non-viral vectors with
demonstrated capability in nucleic acid cellular transfection. For
more information on Celsion, visit: http://www.celsion.com.
(CLSN-FIN).
About Horizon Technology
Finance
Horizon Technology Finance Corporation is a
leading specialty finance company that provides capital in the form
of secured loans to venture capital backed companies in the
technology, life science, healthcare information and services, and
cleantech industries. The investment objective of Horizon is to
maximize its investment portfolio's return by generating current
income from the debt investments it makes and capital appreciation
from the warrants it receives when making such debt investments.
Headquartered in Farmington, Connecticut, Horizon has regional
offices in Pleasanton, California, Reston, Virginia and Boston,
Massachusetts. Horizon's common stock trades on the NASDAQ Global
Select Market under the ticker symbol "HRZN". To learn more, please
visit www.horizontechfinance.com.
Forward-looking Statements
Celsion wishes to inform readers that
forward-looking statements in this release are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Readers are cautioned that such forward-looking
statements involve risks and uncertainties including, without
limitation, unforeseen changes in the course of research and
development activities and in clinical trials; the uncertainties of
and difficulties in analyzing interim clinical data; the
significant expense, time, and risk of failure of conducting
clinical trials; the need for Celsion to evaluate its future
development plans; possible acquisitions or licenses of other
technologies, assets or businesses; possible actions by customers,
suppliers, competitors, regulatory authorities; and other risks
detailed from time to time in Celsion's periodic reports and
prospectuses filed with the Securities and Exchange Commission.
Celsion assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events, new information or otherwise.
Celsion Investor ContactJeffrey
W. ChurchExecutive Vice President and
CFO609-482-2455jchurch@celsion.com
Or
Horizon Investor Relations
ContactICRGarrett Edsonir@horizontechfinance.com(860)
284-6450
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