- An preliminary tranche of $20 million drawn on the mortgage closing
- Funds ongoing scientific improvement of key investigational product candidates
- Financing gives flexibility and extends runway by a number of scientific catalysts anticipated in 2021
ROCKVILLE, Md. and CHESTERBROOK, Pa., June 07, 2021 (GLOBE NEWSWIRE) — Cerecor Inc. (NASDAQ: CERC), a biopharmaceutical firm targeted on turning into a pacesetter within the improvement and commercialization of therapies for uncommon and orphan illnesses, at the moment introduced that it has entered right into a debt financing settlement led by Horizon Expertise Finance Company (NASDAQ: HRZN) (“Horizon”) to supply as much as $35.0 million in time period loans.
“We’re happy to associate with Horizon, a number one specialty finance firm that has an intensive historical past of supporting revolutionary life science firms,” mentioned Michael Cola, Chief Govt Officer of Cerecor. “Over the course of 2021, we anticipate plenty of necessary knowledge readouts throughout our immunology, oncology, and uncommon genetic problems product candidates. This transaction instantly strengthens and extends our monetary sources to advance our scientific pipeline in the direction of these key improvement milestones.”
Gerald A. Michaud, President of Horizon acknowledged, “We’re delighted to supply this financing to Cerecor and trust within the Firm’s enterprise technique. We look ahead to watching the Firm attain its essential improvement milestones for its orphan and uncommon illness therapies within the pipeline. This funding in Cerecor gives one other instance of our skill to finance life sciences firms by a number of phases of improvement and thru numerous worth inflection factors.”
$20 million of the $35 million mortgage was funded upon closing. The remaining $15 million could also be funded upon Cerecor reaching sure predetermined milestones. Every advance of the mortgage can be repaid in 42 month-to-month funds consisting of 18 month-to-month funds of curiosity solely, adopted by 24 month-to-month funds of principal and accrued curiosity, and can be payable month-to-month in arrears. The interest-only interval could also be prolonged to 24 months contingent upon Cerecor reaching sure milestones. In reference to the financing, Cerecor issued Horizon warrants to buy as much as 403,844 of its frequent shares at an train value of $2.60 per share. Proceeds can be used to help the continued scientific improvement of key investigational product candidates inside its pipeline and for common working capital functions.
Jefferies acted as unique arranger and monetary advisor to Cerecor on this transaction.
Additional info with respect to the debt financing settlement with Horizon can be contained in a Present Report back to be filed on Type 8-Ok by Cerecor with the Securities and Change Fee.
Cerecor is a biopharmaceutical firm targeted on turning into a pacesetter within the improvement and commercialization of therapies for uncommon and orphan illnesses. The corporate is advancing its clinical-stage pipeline of revolutionary therapies that deal with unmet affected person wants inside uncommon and orphan illnesses. The corporate’s uncommon illness pipeline consists of CERC-801, CERC-802 and CERC-803, that are in improvement for congenital problems of glycosylation and CERC-006, an oral mTORc1/c2 inhibitor in improvement for the remedy of complicated lymphatic malformations. The corporate can also be creating two monoclonal antibodies, CERC-002, and CERC-007. CERC-002 targets the cytokine LIGHT (TNFSF14) and is in scientific improvement for remedy of extreme pediatric-onset Crohn’s illness, and COVID-19 acute respiratory misery syndrome. CERC-007 targets the cytokine IL-18 and is in scientific improvement for the remedy of Nonetheless’s illness (grownup onset Nonetheless’s illness (AOSD) and systemic juvenile idiopathic arthritis (sJIA)), and a number of myeloma (MM). CERC-006, 801, 802 and 803 have all obtained Orphan Drug Designation and Uncommon Pediatric Illness Designation, which makes all 4 eligible for a precedence evaluate voucher upon FDA approval.
For extra details about Cerecor, please go to www.cerecor.com.
About Horizon Expertise Finance
Horizon Expertise Finance Company (NASDAQ: HRZN) is a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital backed firms within the expertise, life science, healthcare info and providers, and sustainability industries. The funding goal of Horizon is to maximise its funding portfolio’s return by producing present revenue from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional workplace in Pleasanton, California, and funding professionals situated in Portland, Maine, Austin, Texas, and Reston, Virginia. To study extra, please go to www.horizontechfinance.com.
This press launch might embrace forward-looking statements made pursuant to the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements are statements that aren’t historic information. Such forward-looking statements are topic to vital dangers and uncertainties which are topic to vary primarily based on numerous elements (a lot of that are past Cerecor’s management), which might trigger precise outcomes to vary from the forward-looking statements. Such statements might embrace, with out limitation, statements with respect to Cerecor’s plans, goals, projections, expectations and intentions and different statements recognized by phrases corresponding to “tasks,” “might,” “would possibly,” “will,” “might,” “would,” “ought to,” “proceed,” “seeks,” “goals,” “predicts,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential,” or comparable expressions (together with their use within the unfavourable), or by discussions of future issues corresponding to: the event of product candidates or merchandise; timing and success of trial outcomes and regulatory evaluate; potential attributes and advantages of product candidates; and different statements that aren’t historic. These statements are primarily based upon the present beliefs and expectations of Cerecor’s administration however are topic to vital dangers and uncertainties, together with: drug improvement prices, timing and different dangers, together with reliance on investigators and enrollment of sufferers in scientific trials, which may be slowed by the COVID-19 pandemic; regulatory dangers; Cerecor’s money place and the potential want for it to boost extra capital; common financial and market dangers and uncertainties, together with these attributable to the COVID-19 pandemic; and people different dangers detailed in Cerecor’s filings with the Securities and Change Fee. Precise outcomes might differ from these set forth within the forward-looking statements. Besides as required by relevant regulation, Cerecor expressly disclaims any obligations or endeavor to launch publicly any updates or revisions to any forward-looking statements contained herein to replicate any change in Cerecor’s expectations with respect thereto or any change in occasions, situations or circumstances on which any assertion is predicated.
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