TCON - Tracon Pharmaceuticals announces $35M non-dilutive debt facility
- Tracon Pharmaceuticals ( NASDAQ: TCON ) on Tuesday announced a $35M non-dilutive long-term debt facility with venture debt firm Runway Growth Capital.
- $10M of the $35M loan was funded on closing.
- Additional $25M under the facility may be funded on reaching certain clinical targets and at Runway's discretion.
- The loan has a 24-month interest-only period, followed by 24 monthly payments of principal and interest.
- TCON also issued Runway warrants to buy up to ~150.8K shares at an exercise price of $1.99/share.
- Proceeds from the facility will be used to support the ongoing ENVASARC trial and for general purposes.
- "This financing extends our cash runway to support the ENVASARC trial while we await completion of the phase 1 TJ4309 clinical trial that triggers I-Mab's ( IMAB ) license termination option for $9M as well as the outcome of the binding arbitration with IMAB, both of which are expected this quarter," said TCON CEO Charles Theuer.
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Tracon Pharmaceuticals announces $35M non-dilutive debt facility