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Hercules Provides $10MM Term Loan to Cleveland BioLabs

October 02, 2013, 07:19 AM
Filed Under: Technology


Cleveland BioLabs, Inc. closed on a loan and security agreement with Hercules Technology Growth Capital, Inc., providing for a senior secured term loan of up to $10 million. Hercules is a leader in customized debt financing for venture-backed companies in technology-related markets including life sciences.

Neil Lyons, CPA, Chief Financial Officer, stated "This loan provides financial runway with limited dilution, while we pursue the potential award of a development contract from the Biomedical Advanced Research and Development Authority ("BARDA") regarding our radiation countermeasure indication for Entolimod."

The loan is funded in two tranches with the first $6 million tranche funded at closing, and a second $4 million tranche to be made available upon the award, if any, of a development contract by BARDA or other funding that would fund studies reasonably expected to lead to a BLA filing for Entolimod as a radiation countermeasure. "We anticipate that this first $6 million tranche will provide cash runway into the second quarter of 2014, given current cash resources and spending levels," continued Mr. Lyons.

The loan matures 39 months after closing, and provides for an initial interest-only period of 12 months. As partial compensation, CBLI granted Hercules a warrant to purchase 156,250 shares of common stock at an exercise price of $1.60 per share. Further information regarding this loan and the warrant is contained in a Current Report on Form 8-K to be filed by CBLI with the Securities and Exchange Commission.

Hercules Technology Growth Capital, Inc. is a specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science and energy and renewables technology industries, at all stages of development.







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