Armata Pharmaceuticals, a biotechnology company focused on pathogen-specific bacteriophage therapeutics for antibiotic-resistant and difficult-to-treat bacterial infections, entered into a secured credit agreement with Innoviva Strategic Opportunities LLC, a wholly-owned subsidiary of Innoviva, Inc., Armata's largest shareholder. The gross proceeds to be received by the Company at closing are $35 million before deducting transaction-related expenses.

Proceeds from the $35 million new financing transaction will be used to advance the Company's lead therapeutic phage candidates, including AP-PA02 and AP-SA02, which target infections caused by Pseudomonas aeruginosa and Staphylococcus aureus, respectively. The credit agreement provides for a secured term loan facility in an aggregate amount of $35 million at an interest rate of 14.0% per annum with a maturity date of June 4, 2025. Repayment of the loan is guaranteed by the Company's domestic subsidiaries, and the loan is secured by substantially all of the assets of the Company and the subsidiary guarantors.

"Innoviva has been an invaluable partner to Armata over the years, and we view this latest financing as further evidence of their confidence in our mission, our clinical development progress, and our team," stated Dr. Deborah Birx, chief executive officer of Armata. "Our phage candidates are highly differentiated through their purity and specificity for their bacterial targets, and our 'cocktail' approach continues to demonstrate a favorable safety and tolerability profile, allowing us to continue to evaluate higher doses and longer durations of treatment in advance of registrational Phase 3 trials. This financing will enable Armata to fully enroll both ongoing Phase 2 trials, one in acute bacteremia and one in non-cystic fibrosis bronchiectasis, and prepare the Company for two pivotal trials. I would like to thank the team at Innoviva for their continued support."