Axovant Announces Amendment to Credit Facility with Hercules Capital
December 03 2019 - 7:00AM
- New loan amendment reduces loan
obligation by 50% without penalty, eliminates minimum cash
covenant, and extends interest-only period for 9 months
- Debt service burden reduced by
approximately $2.0 million per month during interest-only
period
Axovant Gene Therapies Ltd. (NASDAQ: AXGT), a clinical-stage
company developing innovative gene therapies, today announced the
completion of an amendment to its loan and security agreement with
Hercules Capital, Inc. (“Hercules”). The amendment provides for a
9-month interest-only period commencing December 2019, as well as
the elimination of the covenant to maintain a minimum cash balance.
Prior to the amendment, the minimum cash covenant amount was $30.0
million. Axovant prepaid 50%, or approximately $15.7 million, of
outstanding principal due without penalty. No new securities or
derivatives in Axovant Gene Therapies Ltd. are being issued as part
of this loan amendment with Hercules.
“We are very pleased with the new facility and
greatly appreciate the support of Hercules as we continue to
strengthen our financial position. The amendment lowers our monthly
spend by approximately $2.0 million per month and additionally
frees up $15.7 million in cash, formerly subject to the covenant,
to support the development of our three clinical programs,” said
David Nassif, Chief Financial Officer of Axovant.
About Axovant
Axovant Gene Therapies, part of the Roivant
family of companies, is a clinical-stage company focused on
developing a pipeline of innovative gene therapy product candidates
for debilitating neurological diseases. The company's current
pipeline of investigational gene therapy candidates targets GM1
gangliosidosis, GM2 gangliosidosis (including Tay-Sachs disease and
Sandhoff disease), and Parkinson’s disease. Axovant is focused on
accelerating product candidates into and through clinical trials
with a team of experts in gene therapy development and through
external partnerships with leading gene therapy organizations. For
more information, please visit www.axovant.com.
About Roivant
Roivant Sciences aims to improve health by
rapidly delivering innovative medicines and technologies to
patients. It does this by building Vants – nimble, entrepreneurial
biotech and healthcare technology companies with a unique approach
to sourcing talent, aligning incentives, and deploying technology
to drive greater efficiency in R&D and commercialization. For
more information, please visit www.roivant.com.
Forward-Looking Statements
This press release contains forward-looking
statements for the purposes of the safe harbor provisions under The
Private Securities Litigation Reform Act of 1995 and other federal
securities laws. The use of words such as "may," "might," "will,"
"would," "should," "expect," "believe," "estimate," and other
similar expressions are intended to identify forward-looking
statements. For example, all statements Axovant makes regarding the
initiation, timing, progress, costs and reporting of results of its
pipeline programs, as well as statements regarding anticipated cost
savings, capital allocation, and debt reduction associated with the
amendment to the Hercules loan and security agreement, are
forward-looking. All forward-looking statements are based on
estimates and assumptions by Axovant’s management that, although
Axovant believes to be reasonable, are inherently uncertain. Actual
financial and clinical results and other situations of the future
may differ materially from those presented in this press release
due to various known and unknown factors. For more information with
respect to the risks and uncertainties related to any
forward-looking statements, please refer to Axovant’s filings with
the Securities and Exchange Commission (SEC), including its most
recent Quarterly Report on Form 10-Q filed with the SEC on November
8, 2019, as updated by its subsequent filings with the SEC. Any
forward-looking statement speaks only as of the date on which it
was made. Axovant undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Contacts:
Media and Investors
Parag MeswaniAxovant Gene Therapies(212)
547-2523investors@axovant.commedia@axovant.com
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