Cell Therapeutics, Inc. (CTIC) Thursday announced a loan agreement with Hercules Technology Growth Capital, Inc. or HTGC, providing for a senior secured term loan of up to $15 million.
Proceeds from this loan facility are expected to provide the company with additional operating capital to advance Phase 3 clinical development programs.
The first $10 million of the term loan was funded at closing. The remaining $5 million is available at the company's option any time from November 30 through December 15, on certain conditions.
The term loan is repayable over 42 months after closing, including an initial interest-only period of 12 months after closing.
CTI has granted Hercules warrants to purchase shares of common stock in an amount of up to 5 percent of the total loan commitment.
James Bianco, CEO of CTI, said, "Our primary focus remains on our near-term strategic goals of completing the Phase 3 studies of pacritinib in patients with myelofibrosis, driving adoption of PIXUVRI in Europe and securing non-equity based operating capital through strategic partnerships."
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