Date: 2015-10-01
Type of information: Loan
Company: Immune Pharmaceuticals (USA - MA, Israel)
Investors: Discover Growth Fund (Cayman Islands) Hercules Technology Growth Capital (USA - CA)
Amount: $21.5 million
Funding type: loan
Planned used: These financing agreements will support clinical development for bertilimumab, in bullous pemphigoid and ulcerative colitis. Immune Pharmaceuticals intends also to explore additional indications for bertilimumab, to bring the topical nano-formulated cyclosporine program into clinical trials in atopic dermatitis and psoriasis, and advance its lead NanomAb candidate to Phase I in oncology. \"This financing extends our working capital for the next eighteen to twenty four months, said Gad Berdugo, Executive Vice President and Chief Financial Officer of Immune.
Others: * On October 1, 2015, Immune Pharmaceuticals announced that the company has received an additional $3 million in gross proceeds from Discover Growth Fund pursuant to the agreement previously disclosed in the Company\'s Current Report on Form 8K filed on July 29, 2015 (see below). This financing was in addition to the gross proceeds of $9 million already received from Discover at the same $2.50 conversion price and terms and the $4.5 million from Hercules Technology Growth Capital. Hercules also provided Immune the option to draw down additional capital under the term loan of up to $5 million in gross proceeds subject to clinical milestones and other conditions. The additional $3 million from Discover was received upon an effective \"resale\" registration statement pertaining to the Series D Preferred and stockholders approval on Friday, September 25, 2015. Immune has now received $16.5 million gross proceeds of the potential $21.5 million. * On July 29, 2015, Immune Pharmaceuticals announced that it has secured financings of up to $21.5 million through two financing agreements. The first, with Hercules Technology Growth Capital, for a term loan of up to $9.5 million. The second agreement, with mutual fund Discover Growth Fund for the sale to Discover of newly created Series D Redeemable Convertible Preferred Stock for up to $12 million in gross proceeds to the company. Immune received $13.5 million in gross proceeds: $9.0 million from Discover and $4.5 million from Hercules, following the execution of the two agreements. Immune expects to receive an additional $3.0 million from Discover upon an effective \"resale\" registration statement for the securities sold and stockholders approval in accordance with the NASDAQ rules (stockholders of the company, representing close to 50% of the voting power as of July 28, 2015, have already agreed to vote in favor of such proposal). Immune also has the option to draw down additional capital under the term loan with Hercules of up to $5.0 million prior to June 15, 2016, subject to certain clinical milestones and other conditions. The Preferred Stock issued to Discover is convertible at a fixed price of $2.50 per share and has a six and a half year maturity term, at which time it will convert automatically into common stock at $2.50 per share. The preferred stock bears an accrued annual dividend rate of 8.0%, which may range from 0% to 15%, based on certain adjustments and conditions. The dividend is payable in cash or common stock at the sole discretion of Immune. Roth Capital Partners and Chardan Capital Markets acted as co-lead placement agents on the Discover transaction. TriPoint Global Equities acted as sole placement agent on the Hercules transaction.
Therapeutic area:
