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Full Deal Summary

Hercules Technology Growth Capital agreed to provide Edge Therapeutics Inc. (targeted drug delivery) with up to $10mm in venture debt financing, $3mm of which the biotech drew down up front. The remaining $7mm is available upon reaching milestones. The secured notes have a four-year term, and Edge is required to pay back interest only for the first 12 months, following by 30 equal monthly payments of principal plus interest.

The company will spend the money on lead program EG1962, a controlled-released microparticle formulation of nimodipine that’s released over a three-week period directly into the brain. The candidate is in Phase I/II to reduce ischemic deficits and for patients suffering aneurysmal subarachnoid hemorrhage (who have endovascular coiling or surgical clipping) or traumatic brain injury. Top-line data from Edge’s NEWTON (Nimodipine microparticles to Enhance recovery While reducing TOxicity after subarachNoid hemorrhage) study is expected in H1 2015.


Update 08/2016

The company entered into an amended and restated loan agreement in which it received $20mm in debt financing from Hercules Capital Inc. The loan will be funded in two tranches, with $15mm drawn down at closing and $5mm available through June 15, 2017 at the borrower's option (loan matures February 3, 2020). The loan bears an annual interest rate of the greater of the sum of 9.15% plus the WSJ prime rate minus 4.5% or 9.15%. The company will make interest only payments for 18 months and repay the principal in 24 equal monthly payments thereafter. The company will use the proceeds to refinance existing debt.


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Financials


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Overview
Potential Deal Value $30.00mm
Transactions 1 of 4 (08/2016)
Debt $15.00mm
Total Line Value $15.00mm
Gross Proceeds $15.00mm
Investors Hercules Capital
Transactions 2 of 4 (09/2014)
Debt $3.00mm
Total Line Value $3.00mm
Investors Hercules Capital
Transactions 3 of 4
Debt $7.00mm
Total Line Value $7.00mm
Investors Hercules Capital
Transactions 4 of 4
Debt $5.00mm
Total Line Value $5.00mm
Gross Proceeds $5.00mm
Investors Hercules Capital

Deal Information


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Deal Industry Biotechnology
Pharmaceuticals
Drug Delivery
Controlled Release
Site Specific
Deal Status Final
Deal Type Financing
Private Placement
Nonconvertible Debt