Pharmasset Receives $10 Million of Working Capital
Friday March 28, 4:05 pm ET
PRINCETON, N.J., March 28 /PRNewswire-FirstCall/ -- Pharmasset, Inc. (Nasdaq: VRUS - News) received a second loan of $10 million from Horizon Technology Finance under an existing working capital loan agreement that was entered into during September 2007. Pharmasset received the first loan of $10 million in October 2007 and, at its option, may receive a third loan of $10 million by November 30, 2008, provided certain conditions are satisfied.
"We believe that our existing cash resources, together with a third loan available under our working capital agreement and anticipated payments under our existing HCV collaboration agreement with Roche, will be sufficient to fund our projected cash requirements for the next 18 months," stated Kurt Leutzinger, Pharmasset's Chief Financial Officer. "In light of the recent stock market volatility, this facility has proved to be valuable in providing flexibility regarding the timing of any future equity financings."
For each $10 million loan funded, Pharmasset will pay interest only for the first 15 months followed by 30 equal monthly installments of principal and accrued interest. The interest rate for the initial loan and the second loan will be 12%. In addition, upon entering into the working capital loan agreement, Pharmasset issued to Horizon a seven-year warrant to purchase up to 149,377 shares of common stock at an exercise price of $12.05 per share. The warrant is currently exercisable for up to 66,390 shares associated with the first loan and up to 49,793 shares associated with the second loan. The remaining 33,194 shares will become exercisable upon the funding of the third loan if it occurs.
About Horizon
Founded in 2003, Horizon Technology Finance, LLC is an independent venture debt finance company that offers senior and subordinated working capital to emerging technology companies in the information technology and life sciences industries. Horizon provides a compelling alternative to the restrictive structures offered by banks and corporate finance companies.
The Horizon management team has provided debt financing for more than 750 companies over the last 15 years representing more than $2.0 billion in commitments. Horizon has offices in Farmington, CT and Pleasant Hill, CA. For additional information, please go to www.HorizonTechFinance.com.
surf's up......crikey
