Apr 06, 2010 -- PolyMedix, Inc., a biotechnology company focused on developing new therapeutic drugs to treat acute cardiovascular disorders and infectious diseases, said that it has secured a $14 million credit facility with Hercules Technology II, an affiliate of Hercules Technology Growth Capital, Inc.
PolyMedix said that proceeds from the facility may be used to fund certain Phase 3 enabling activities for its two lead compounds, PMX-60056 and PMX-30063, including manufacturing and toxicology studies, and for other general corporate purposes.
In addition, PolyMedix has filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC). While PolyMedix does not have the immediate intention to conduct an offering of securities registered pursuant to the registration statement, the registration statement, when declared effective by the SEC, is designed to provide PolyMedix with flexibility to offer and sell from time to time, up to $100 million of Company securities in the future.
“PolyMedix is committed to pursuing alternatives to insure future access to capital on the most favorable terms possible,” said Edward Smith, Vice President Finance and Chief Financial Officer of PolyMedix. “While our capital resources, including the proceeds from our 2009 registered offering, are expected to be sufficient to fund our planned Phase 2 clinical trials, the addition of both the Hercules facility and the shelf will allow for greater flexibility for funding future development activities in a way that is intended to both minimize dilution to current stockholders and accelerate potential Phase 3 clinical trials.”
$14 Million Credit Facility
The $14 million credit facility with Hercules provides for an initial advance of $10 million, interest-only payments for at least nine months, and bears per annum interest at the greater of 12.35 percent or prime plus 7.1 percent, not to exceed 14 percent. Subject to the terms of the facility, PolyMedix may obtain an additional advance of $4 million. Repayment of principal begins in 2011. As part of the financing, Hercules received a warrant to purchase 627,586 shares of PolyMedix common stock at an exercise price equal to the 20-day volume weighted average price of PolyMedix’s common stock prior to the closing of the facility, or $1.16 per share. If PolyMedix borrows the additional $4 million available under the facility, the warrant would become exercisable for an additional 156,896 shares at a purchase price of $1.16 per share. The warrants will expire in five years from the date of the grant.
Shelf Registration Statement
The shelf registration statement has been filed with the SEC, but has not yet become effective. The securities covered by the registration statement may not be sold nor may offers to buy these securities be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer of any securities for sale or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of any such jurisdiction. Any offer of these securities will be made solely by means of the prospectus included in the registration statement and any prospectus supplement that may be issued with respect to such offering.
((Comments on this story may be sent to health@closeupmedia.com))
For full details on Hercules Technology Growth Capital Inc (HTGC) HTGC. Hercules Technology Growth Capital Inc (HTGC) has Short Term PowerRatings at TradingMarkets. Details on Hercules Technology Growth Capital Inc (HTGC) Short Term PowerRatings is available at This Link.
For full details on (PYMX) PYMX. (PYMX) has Short Term PowerRatings at TradingMarkets. Details on (PYMX) Short Term PowerRatings is available at This Link.
