Taysha Gene Therapies Secures up to $100 Million Non-Dilutive Term Loan Financing
August 16 2021 - 7:00AM
Business Wire
Financing strengthens balance sheet, furthers
financial and operational flexibility and lowers overall cost of
capital
No financial covenants and no warrants issued
in connection with non-dilutive financing
Full drawdown expected to extend cash runway to
support key value-creating milestones including availability of
Phase 1/2 GAN data from the highest dose cohort as well as
regulatory guidance on registration pathway for GAN, data readouts
in GM2 gangliosidosis, Rett syndrome, CLN1 disease, and
SURF1-associated Leigh syndrome and, importantly, a potential
regulatory approval for TSHA-120 in GAN without the need for
additional financing
Taysha Gene Therapies, Inc. (Nasdaq: TSHA), a patient-centric
gene therapy company focused on developing and commercializing
AAV-based gene therapies for the treatment of monogenic diseases of
the central nervous system in both rare and large patient
populations, today announced that it has entered into a loan and
security agreement with Silicon Valley Bank (SVB) that provides
Taysha with up to $100 million of borrowing capacity.
“Access to this non-dilutive financing at an attractive cost of
capital, along with the current cash on hand, will provide Taysha
with operational and financial flexibility to achieve numerous
value-generating milestones including a potential regulatory
approval for TSHA-120 in giant axonal neuropathy, or GAN,” said RA
Session II, Chief Executive Officer of Taysha. “Additional
milestones include the release of Phase 1/2 data in the highest
dose cohort in GAN, and Phase 1/2 data in GM2 gangliosidosis, Rett
syndrome, CLN1 disease and SURF1-associated Leigh syndrome. We are
pleased to partner with SVB as we continue to execute on our
ambitious business plan.”
This non-dilutive financing provides Taysha with up to $100
million, with $40 million available at closing of which Taysha has
drawn $30.0 million. The Company has the option to draw down the
remaining tranches, subject to certain conditions. The interest
rate is the greater of 7.0% or the WSJ Prime Rate plus 3.75%. There
are no financial covenants and no warrants associated with the term
loan.
“Our financial commitment to Taysha speaks to our confidence in
its core strategies and is consistent with our support of
innovative life sciences businesses,” said Michael White, Head of
Business Development, Life Science & Healthcare, Silicon Valley
Bank. “We are delighted to provide additional capital for the
Company to further advance its robust development pipeline and
achieve key value-generating milestones in the years to come.”
“In the last 12 months, we have quickly made the transition from
a private to public company and from preclinical to clinical to
pivotal-stage,” said Kamran Alam, Chief Financial Officer of
Taysha. “Building upon this momentum, we expect this non-dilutive
financing to enable us to be well positioned to maximize long-term
stockholder value.”
About Taysha Gene Therapies
Taysha Gene Therapies (Nasdaq: TSHA) is on a mission to
eradicate monogenic CNS disease. With a singular focus on
developing curative medicines, we aim to rapidly translate our
treatments from bench to bedside. We have combined our team’s
proven experience in gene therapy drug development and
commercialization with the world-class UT Southwestern Gene Therapy
Program to build an extensive, AAV gene therapy pipeline focused on
both rare and large-market indications. Together, we leverage our
fully integrated platform—an engine for potential new cures—with a
goal of dramatically improving patients’ lives. More information is
available at www.tayshagtx.com.
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.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as “anticipates,” “believes,” “expects,”
“intends,” “projects,” and “future” or similar expressions are
intended to identify forward-looking statements. Forward-looking
statements include statements concerning or implying the potential
of our product candidates to positively impact quality of life and
alter the course of disease in the patients we seek to treat, our
research, development and regulatory plans for our product
candidates, the anticipated use of proceeds from borrowings under
the loan and security agreement, our ability to access the full
$100 million potentially available under the loan and security
agreement and our ability to fund operations into the second half
of 2023. Forward-looking statements are based on management’s
current expectations and are subject to various risks and
uncertainties that could cause actual results to differ materially
and adversely from those expressed or implied by such
forward-looking statements. Accordingly, these forward-looking
statements do not constitute guarantees of future performance, and
you are cautioned not to place undue reliance on these
forward-looking statements. Risks regarding our business are
described in detail in our Securities and Exchange Commission
(“SEC”) filings, including in our Annual Report on Form 10-K for
the year ended December 31, 2020 and our Quarterly Report on Form
10-Q for the quarter ended June 30, 2021, both of which are
available on the SEC’s website at www.sec.gov. Additional
information will be made available in other filings that we make
from time to time with the SEC. Such risks may be amplified by the
impacts of the COVID-19 pandemic. These forward-looking statements
speak only as of the date hereof, and we disclaim any obligation to
update these statements except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210816005185/en/
Company Contact: Kimberly Lee, D.O. SVP, Corporate
Communications and Investor Relations Taysha Gene Therapies
klee@tayshagtx.com
Media Contact: Carolyn Hawley Canale Communications
carolyn.hawley@canalecomm.com
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