Gritstone Establishes Credit Facility for Up to $80 Million with Hercules Capital and Silicon Valley Bank
July 21 2022 - 4:05PM
Gritstone bio, Inc. (Nasdaq: GRTS), a clinical-stage biotechnology
company that aims to develop the world’s most potent vaccines,
today announced it has entered into an $80 million credit facility
with Hercules Capital, Inc. (NYSE: HTGC) and Silicon Valley Bank.
"This non-dilutive facility enhances our
financial flexibility as we enter a period of multiple potential
value-creating milestones for Gritstone,” said Andrew Allen, M.D.,
Ph.D., Co-founder, President, and Chief Executive Officer of
Gritstone. “We anticipate several data readouts over the next 18
months, beginning with our SLATE-KRAS product candidate later this
quarter. We believe our self-amplifying mRNA (samRNA) platform
is an attractive asset with great utility across both oncology and
a wide array of infectious diseases. We hope to continue unlocking
its value in infectious diseases with data from our CORAL program
later this year. Establishing this facility reduces our dependence
on the capital markets and enables us to focus on executing against
our clinical, operational, and strategic goals.”
Under the terms of the $80 million credit
facility, $20 million was drawn at closing with an additional $10
million available for drawdown by March 15, 2023. The remaining $50
million becomes available in tranches through June 15, 2024, upon
achievement of certain milestones by Gritstone. Gritstone is under
no obligation to draw funds in the future, and there are no
warrants associated with the transaction.
"We are excited to secure this customized credit
facility with favorable terms amidst the current market
environment,” said Celia Economides, Executive Vice President and
Chief Financial Officer of Gritstone. “We believe this $80 million
credit facility reflects the significant value inherent in our
innovative platform and, together with capital conservation
measures we’ve implemented, meaningfully extends our cash
runway.”
“Hercules is pleased to partner with Gritstone
as it advances its clinical stage programs and continues expanding
its footprint in infectious diseases,” stated Himani Bhalla,
Managing Director at Hercules Capital. “This credit facility aims
to help Gritstone deliver its novel vaccines to improve patient
outcomes and eliminate disease and is yet another example of
Hercules’ capabilities to support innovative growth-stage life
science companies,” said Cristy Barnes, Managing Director at
Hercules Capital.
“We are delighted to work with Hercules and
support Gritstone’s continued growth and innovative platform in
developing powerful vaccines and treating, and preventing, cancer
and infectious diseases,” said Michael White, Managing Director at
Silicon Valley Bank.
Capital Advisors Group served as Gritstone’s
financial advisor in connection with the credit facility.
Additional details of the loan agreement will be
filed with the Securities and Exchange Commission on a Current
Report on Form 8-K.
About Gritstone bioGritstone
bio, Inc. (Nasdaq: GRTS) is a clinical-stage biotechnology company
that aims to create the world’s most potent vaccines. We leverage
our innovative vectors and payloads to train multiple arms of the
immune system to attack critical disease targets. Independently and
with our collaborators, we are advancing a portfolio of product
candidates to treat and prevent viral diseases and solid tumors in
pursuit of improving patient outcomes and eliminating disease.
www.gritstonebio.com
Gritstone Forward-Looking
StatementsThis press release contains
forward-looking statements, including, but not limited to,
statements related to the potential of Gritstone’s therapeutic
programs; the advancements in the company’s ongoing clinical
trials; the timing of data announcements related to ongoing
clinical trials and the initiation of future clinical trials. Such
forward-looking statements involve substantial risks and
uncertainties that could cause Gritstone’s research and clinical
development programs, future results, performance or achievements
to differ significantly from those expressed or implied by the
forward-looking statements. Such risks and uncertainties include,
among others, the uncertainties inherent in the drug development
process, including Gritstone’s programs’ clinical stage of
development, the process of designing and conducting preclinical
and clinical trials, the regulatory approval processes, the timing
of regulatory filings, the challenges associated with manufacturing
drug products, Gritstone’s ability to successfully establish,
protect and defend its intellectual property and other matters that
could affect the sufficiency of existing cash to fund operations.
Gritstone undertakes no obligation to update or revise any
forward-looking statements. For a further description of the risks
and uncertainties that could cause actual results to differ from
those expressed in these forward-looking statements, as well as
risks relating to the business of the company in general, see
Gritstone’s most recent Quarterly Report on Form 10-Q filed on May
5, 2022 and any current and periodic reports filed with the
Securities and Exchange Commission.
Gritstone ContactsMedia:Ashlea
Kosikowski1ABashlea@1abmedia.com
Investors:George E. MacDougallDirector, Investor Relations &
Corporate CommunicationsGritstone bioIr@gritstone.com
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