SAN DIEGO, Nov. 5, 2021 /PRNewswire/ -- Viracta
Therapeutics, Inc. (Nasdaq: VIRX), a precision oncology company
primarily focused on targeting virus-associated malignancies, today
announced that the Company has entered into a loan and security
agreement with Silicon Valley Bank (SVB) and Oxford Finance LLC
(Oxford) for up to $50.0 million. In
connection with the $50.0 million
credit facility, the Company and SVB agreed to terminate the
Company's prior $15.0 million loan
and security agreement and the existing $5.0
million debt balance was refinanced. Under this new
$50.0 million credit facility, the
remaining $45.0 million is available
in two additional tranches of $20.0
million and $25.0 million. The
Company is under no obligation to draw funds in the future.
"This expanded credit facility increases our financial strength
and provides the Company with significant strategic and operational
flexibility by securing access to a non-dilutive and immediately
available financing option that carries an attractive single-digit
cost of capital," said Dan
Chevallard, Chief Operating Officer and Chief Financial
Officer at Viracta. "We appreciate SVB's continued support, are
pleased to welcome the Oxford team to Viracta, and believe
broadening the relationship at this time offers external validation
in addition to valuable access to capital that could potentially
support our future prospects and corporate strategy."
Michael White, National Head of
Business Development and Managing Director for SVB's Life Sciences
and Healthcare Practice added, "We are excited to expand our
already strong relationship with Viracta and partner with the
Oxford team. We believe Viracta is well-positioned to advance
towards multiple value-creating inflection points, with the
initiations of its pivotal NAVAL-1 trial and its Phase 1b/2 solid tumor trial, as well as the progress
of its preclinical pipeline."
"Viracta's platform technology has enabled broad applicability
in a variety of EBV positive cancers and has the potential to
create therapies for other virus-related cancers through its
inducible, synthetic lethality approach," said Christopher A. Herr, Senior Managing Director at
Oxford. "Oxford is happy to enter this partnership with SVB and
support Viracta's focus on advancing new medicines for the
treatment of virus-associated malignancies."
About Silicon Valley Bank
For nearly 40 years, Silicon Valley Bank (SVB) has helped
innovative companies and their investors move bold ideas forward,
fast. SVB provides targeted financial services and expertise
through its offices in innovation centers around the world. With
commercial, international and private banking services, SVB helps
address the unique needs of innovators. Learn more at svb.com.
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior
secured loans to public and private life sciences and healthcare
services companies worldwide. For over 20 years, Oxford has
delivered flexible financing solutions to its clients, enabling
these companies to maximize their equity by leveraging their
assets. In recent years, Oxford has originated over $7 billion in loans, with lines of credit ranging
from $5 million to $150 million. Oxford is headquartered in
Alexandria, Va., with additional
offices in San Diego, Calif.;
Palo Alto, Calif.; and the greater
Boston and New York City areas. For more information,
visit oxfordfinance.com.
About Viracta Therapeutics, Inc.
Viracta is a precision oncology company targeting
virus-associated malignancies. Viracta's proprietary
investigational drug, nanatinostat, is currently being evaluated in
combination with the antiviral agent valganciclovir as an oral
combination therapy in two Phase 2 clinical trials for EBV-positive
lymphoma and one Phase 1b/2 trial in
patients with EBV+ nasopharyngeal carcinoma and other
EBV+ solid tumors. Viracta is also pursuing the
application of its inducible synthetic lethality approach in other
virus-related cancers.
For additional information please visit www.viracta.com.
Forward-Looking Statements
This communication contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, without limitation, the statement regarding: the
availability of future tranches; the effect of the credit facility
on Viracta's current and future financial position and flexibility;
the external valuation as a result of the transaction; the ability
of the funds to support future prospects and strategy; Viracta's
ability to advance to inflection points; the ability of Viracta's
technology to create therapies for other virus-related cancers
through its inducible, synthetic lethality approach; and other
statements that are not historical facts. Risks and uncertainties
related to Viracta that may cause actual results to differ
materially from those expressed or implied in any forward-looking
statement include, but are not limited to: Viracta's ability to
successfully enroll patients in and complete its ongoing and
planned clinical trials; Viracta's plans to develop and
commercialize its product candidates, including all oral
combinations of nanatinostat and valganciclovir; the timing of
initiation of Viracta's planned clinical trials; the timing of the
availability of data from Viracta's clinical trials; previous
preclinical and clinical results may not be predictive of future
clinical results; the timing of any planned investigational new
drug application or new drug application; Viracta's plans to
research, develop and commercialize its current and future product
candidates; the clinical utility, potential benefits and market
acceptance of Viracta's product candidates; Viracta's ability to
manufacture or supplying nanatinostat, valganciclovir and
pembrolizumab for clinical testing; Viracta's ability to identify
additional products or product candidates with significant
commercial potential; developments and projections relating to
Viracta's competitors and its industry; the impact of government
laws and regulations; Viracta's ability to protect its intellectual
property position; and Viracta's estimates regarding future
expenses, capital requirements and need for additional financing in
the future.
These risks and uncertainties may be amplified by the COVID-19
pandemic, which has caused significant economic uncertainty. If any
of these risks materialize or underlying assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. Additional risks and
uncertainties that could cause actual outcomes and results to
differ materially from those contemplated by the forward-looking
statements are included under the caption "Risk Factors" and
elsewhere in Viracta's reports and other documents that Viracta has
filed, or will file, with the SEC from time to time and available
at www.sec.gov.
The forward-looking statements included in this communication
are made only as of the date hereof. Viracta assumes no obligation
and does not intend to update these forward-looking statements,
except as required by law or applicable regulation.
Investor Relations Contact:
Ashleigh Barreto
Head of Investor Relations & Corporate Communication
Viracta Therapeutics, Inc.
abarreto@viracta.com
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SOURCE Viracta