Date: 2014-09-26
Type of information: Termination of an agreement
Compound:
Company: Aveo Oncology (USA - MA) BMR-650 E Kendall (USA - CA) Hercules Technology Growth Capital (USA - CA)
Therapeutic area:
Type agreement: termination of a lease agreement loan agreement
Action mechanism:
Disease:
Details: * On September 26, 2014, Aveo Oncology announced that, as part of its plan to decrease operational expenses, the Company has entered into a termination of its lease agreement pertaining to the Company’s headquarters in Cambridge, Massachusetts, reducing its existing lease obligations by $110 million. In addition, the Company has amended its debt financing facility with Hercules Technology Growth Capital (HTGC). Combined, these transactions do not impact the Company’s prior financial guidance, with existing cash, cash equivalents and marketable securities providing resources to fund its operating plan into the fourth quarter of 2015 with an expected 2014 year-end cash balance of $50-55 million. Under the terms of its amended lease agreement with BMR-650 E Kendall B LLC, Aveo will terminate its long term lease dated May 9, 2012, in exchange for a termination fee of approximately $7.8 million due upon execution of the agreement, and $7.8 million payable over the subsequent nine months. Aveo will immediately vacate the unused portions of its premises at 650 East Kendall St. and will exit the remaining occupied portions of its premises within twelve months.
Pursuant to its amended loan agreement with HTGC, AVEO has received a new $10 million loan, which is in addition to an outstanding principal of $11.6 million from an existing loan agreement. The new loan carries an interest only repayment period of twelve months, with the ability to extend such period for up to an additional twelve months based on the achievement of certain milestones, and has a maturity date of January 1, 2018. The existing loan carries an interest only period of three months, and is expected to be fully repaid by December 2015. In conjunction with the new loan, the Company has issued a warrant to purchase an aggregate of 608,696 shares of AVEO’s common stock, at a price of $1.15 per share.
Financial terms:
Latest news:
