Exagen, a leading provider of autoimmune testing solutions, entered into an agreement with Perceptive Advisors LLC for a term loan credit facility of up to $75 million, with $25 million funded at closing to retire an existing debt facility and strengthen the balance sheet.

“I’m pleased to announce our new debt facility with Perceptive Advisors, a highly respected life sciences investor with a deep understanding of our industry. This strategic partnership extends our amortization timeline, strengthens our balance sheet and provides optionality to accelerate future growth initiatives with access to minimally dilutive capital,” said John Aballi, President and Chief Executive Officer.

“We are excited to partner with Exagen and its management team on their journey to accelerate personalized medicine in autoimmune disease,” said Sam Chawla, Portfolio Manager at Perceptive Advisors. “The Company has a proven track record of advancing diagnoses and providing clinical benefits, and we believe this transaction further enables Exagen to build its leadership position and empower rheumatologists and other healthcare practitioners to greatly enhance patient care.”

On April 25, 2025, Exagen entered into a credit and guaranty agreement pursuant to which Perceptive has agreed to make certain term loans in the aggregate principal amount of up to $75 million. The first $25 million tranche was funded at close and used to retire Exagen's existing term debt facility with Innovatus Capital Partners.

Additional tranches are available at Exagen’s election, as follows:

Second Tranche - $10 million available through March 31, 2026, upon and subject to achievement of certain revenue milestones.
Third Tranche - $10 million available through December 31, 2026, upon and subject to achievement of certain revenue milestones.
Business Development Tranche - $30 million available through March 31, 2027, to be funded at the discretion of Perceptive for the Company’s business development initiatives.

Interest under the credit agreement is Term SOFR + 7%, with a SOFR floor of 4.75%. Exagen will make interest-only payments for 60 months, with the entire outstanding interest and principal amount due and payable upon maturity. The loan is secured by substantially all of Exagen’s assets.

In connection with the initial close, Exagen issued to Perceptive a warrant to purchase 400,000 shares of Exagen common stock, of which 200,000 shares are exercisable at an exercise price of $4.96 per share, equal to the 10-day VWAP immediately prior to the close, and 200,000 are exercisable at an exercise price of $5.58 per share, equal to the 10-day VWAP immediately prior to the close, plus twelve and one-half percent (12.5%).

An additional up to 750,000 warrants may be issued to Perceptive as follows:

• 150,000 shares with the closing of each of the Second and Third tranches, and
• 450,000 shares with the closing of the Business Development Tranche
• The per-share exercise price for 50% of each tranche’s shares will be equal to the 10-day VWAP ending on the business day immediately preceding each tranche's funding date. The per-share exercise price for the balance of each tranche’s warrants will be equal to the 10-day VWAP immediately preceding the funding date, plus twelve and one-half percent (12.5%) of the 10-day VWAP immediately preceding each tranche’s funding date.

Credo 180, Inc. acted as sole financial advisor to Exagen on this transaction.