Liquidia Corporation announced the closing of a debt facility on January 7, 2022, with Silicon Valley Bank (SVB) which provides Liquidia with up to $40.0 million in term loans of which the first $20.0 million was funded at closing. Liquidia initially entered a debt facility with SVB in March 2021 that provided up to $20.5 million in term loans of which $10.5 million had been funded to date.
Under the terms of the new debt facility, SVB will make loans available in three tranches. Proceeds from the first tranche of $20.0 million have been used to retire Liquidia’s existing SVB term debt and adds $9.5 million of cash to Liquidia’s balance sheet. The first tranche also provides the option of drawing an additional $5.0 million at Liquidia’s discretion through December 31, 2022. A second tranche of $7.5 million is available to fund immediately upon receipt of final and unconditional approval for YUTREPIA™ (treprostinil) inhalation powder by December 31, 2022. The third tranche of $7.5 million will be available through August 31, 2023, upon generating trailing six-month net product sales of YUTREPIA of $27.5 million by June 30, 2023. The debt facility will mature on December 1, 2025 and will consist of interest-only payments through December 31, 2023, unless the third tranche milestone is achieved, and then interest-only through December 31, 2024.
Latest Fintech News: Bow River Capital Evergreen Fund (Everx) Closes 2021 With Strong Investor Demand
Michael Kaseta, Chief Financial Officer of Liquidia, said: “We are very pleased to continue our relationship with SVB as we progress towards the potential final approval of YUTREPIA. These initial funds will help support pre-commercial activity and other corporate purposes during 2022, while the additional tranches of debt provide non-dilutive capital at key milestones to ensure a successful launch of YUTREPIA. We expect that the combination of current cash on-hand, the net revenue from our treprostinil injection product offering and this new debt facility will allow us to execute on our current plans through a potential final approval YUTREPIA and, if approval is received, at least the first phase of the YUTREPIA launch.”
Latest Fintech News: Chain Token Lists on Bittrex Global
Scott McCarty, Director of Life Science and Healthcare at Silicon Valley Bank, said: “We are delighted to continue to support Liquidia in their pursuit of addressing unmet patient needs in the pharmaceutical industry. Their investigational product, YUTREPIA, is a great example of what their PRINT® Technology can accomplish and has the potential to play a significant role in treating PAH.”
Latest Fintech News: Symbridge Raises Additional $9 Million in Strategic Round
[To share your insights with us, please write to sghosh@martechseries.com]
