89bio, Inc. announced that it expects to receive $100 million in funding
Summary
89bio, Inc. announced that it expects to receive $100 million in funding89bio, Inc. announced that it has entered into a Loan and Security Agreement with K2 HealthVentures for a private placement of term loans for proceeds of $100,000,000 on January 4, 2023. The Term Loan matures on February 1, 2027; provided, that the maturity date may be extended to August 1, 2027 if the second and third tranches are funded and the Company achieves certain other financing milestones. The term loan bears a variable interest rate equal to the greater of (i) 8.45% and (ii) the sum of (a) the Prime Rate as reported in The Wall Street Journal plus (b) 2.25%. The company may prepay, at its option, all, but not less than all, of the outstanding principal balance and all accrued and unpaid interest with respect to the principal balance being prepaid of the Term Loan, subject to a prepayment premium to which the Lenders are entitled and certain notice requirements. The investors may convert any portion of the principal amount of the term loans then outstanding, up to an aggregate of $7,500,000 in principal amount, into shares of the Companys common stock.