>>Panacos Secures $20 Million Debt Financing
Thursday June 28, 4:02 pm ET
WATERTOWN, Mass.--(BUSINESS WIRE)--Panacos Pharmaceuticals, Inc. (NASDAQ:PANC - News), a biotechnology company dedicated to developing the next generation of antiviral therapeutic products, announced that it has closed a $20 million term loan agreement today with Hercules Technology Growth Capital, Inc. (NASDAQ: HTGC - News). Under the terms of the loan agreement, Hercules has advanced $10 million to the Company immediately upon closing. The Company plans to draw the remaining $10 million prior to September 30, 2007.
"This financing extends Panacos' cash runway in a relatively non-dilutive form, and provides us with additional strategic flexibility as we continue to advance our pipeline of antiviral programs," said Alan W. Dunton, M.D., Panacos' Chief Executive Officer. "We are pleased to enter this relationship with Hercules, and will benefit from their experience and expertise in the biopharmaceutical industry."
Under the agreement, only interest payments will be required for the first 12 months. Thereafter, the balance will be payable in equal monthly installments of principal and interest for 30 months.
As part of the transaction, the Company issued to Hercules a five-year warrant to purchase 646,900 shares of the Company's common stock at an exercise price per share of $3.71.<<
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This isn't too bad, and was the risk I was waiting for to pass. Seems stable after hours. Considering putting in lowball bid . . .
Cheers, Tuck |
