Furiex Pharmaceuticals Enters into Loan Agreement for up to $15 Million
Press Release Source: Furiex Pharmaceuticals, Inc. On Thursday August 18, 2011, 4:04 pm EDT
MORRISVILLE, N.C.--(BUSINESS WIRE)-- Furiex Pharmaceuticals, Inc. (Nasdaq:FURX - News) announced today it has entered into a loan agreement with MidCap Financial and Silicon Valley Bank to provide up to $15.0 million in capital through a secured term loan. Furiex intends to use the proceeds to support research and development for its clinical stage compounds JNJ-Q2, MuDelta and PPD10558.
“We are extremely pleased to have successfully closed on this source of capital,” said Marshall Woodworth, chief financial officer, treasurer and assistant secretary of Furiex. “As we progress our pipeline toward important clinical milestones, this transaction provides us with additional financial flexibility to reach our research and development goals.”
The loan agreement is structured in two tranches. The first tranche in the amount of $10.0 million was drawn upon closing of the transaction. The second tranche of $5.0 million only becomes available to the company if a pre-defined Furiex financing event occurs. Both tranches will have interest-only payments for the first 12 months. The first tranche will have principal and interest payments for a subsequent 36 month period. The second tranche will have principal and interest payments for a subsequent 33 or 36 month period, depending upon the date of execution.
surf's up......crikey
