Spring Bank Pharma funds through 2021 with $20M debt financing
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Spring Bank Pharmaceuticals' headquarters in Hopkinton
Hopkinton startup drugmaker Spring Bank Pharmaceuticals has extended its cash runway beyond the end of 2021 thanks to a $20 million convertible debt financing agreement.
The deal with Israel-based venture capital firm Pontifax Medison Finance, announced Tuesday, calls for no required payments of principal for two years. The firm has the option of converting the outstanding loan based on a conversion price of $8.76 per share, about two times the 30-day volume weighted average of the company's stock.
The company has also agreed to give Pontifax warrants for up to 250,000 aggregate shares of its stock at $6.57 per share, equal to 1.5 times the 30-day volume weighted average price of the stock.
The deal gives the company financial breathing room as it works through clinical trials of several products, including a hepatitis B drug and an intravenously-administered cancer treatment.
The funding will also help support the further evaluation of the company’s autoimmune and inflammatory disease compounds, Chief Financial Officer Jonathan Freve said in a statement.
“Spring Bank has made substantial progress with the continued advancement of its internally developed assets,” he said. “We don’t believe the current market valuation of Spring Bank reflects our positive achievements.”
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