Mustang Bio gets $20M venture debt financing for Worcester facility
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Mustang Bio's building in Worcester
New York-based biotech Mustang Bio has secured $20 million to develop gene and cell therapies at its Worcester facility, it announced Monday.
The $20 million loan from Horizon Technology Finance Corp. of Connecticut will be used to develop therapies in the company’s cell processing facility in the UMass Medicine Science Park, the company said.
The center officially opened in November 2018.
According to the company, $15 million of the loan was funded upon closing. The remaining could be funded upon Mustang Bio achieving specific milestones. Each advance of the loan will be repaid in 42 monthly payments including 18 monthly payments of interest only followed by 24 monthly payments of principal and accrued interest.
In connection with the financing, Mustang Bio issued warrants to Horizon to purchase up to 288,182 common shares at an exercise price of $3.47.
Mustang Bio in December announced an Orphan Drug Designation from the U.S. Food and Drug Administration for a new treatment for a deadly blood cancer with medial survival rates less than 18 months.
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