Mesoblast Enters Into US$75 Million Non-Dilutive Credit Facility
07 March 2018 - 11:31AM
Mesoblast Limited (ASX:MSB) (Nasdaq:MESO) today announced that it
has entered into a US$75 million non-dilutive, four-year credit
facility with Hercules Capital, Inc. (NYSE:HTGC), a leading
specialty finance company.
Proceeds will be primarily used towards funding the
commercialization of MSC-100-IV (remestemcel-L) after this product
candidate successfully met its Phase 3 trial’s primary endpoint of
Day 28 overall response in children with steroid refractory acute
Graft versus Host Disease (aGVHD).
The facility will also be used for the Company’s additional late
stage product candidates: MPC-150-IM in patients with Class II/III
advanced chronic heart failure, and in end-stage Class III/IV heart
failure patients with left ventricular assist devices (LVADs), and
MPC-06-ID in patients with chronic low back pain due to
degenerative disc disease.
Mesoblast drew the first tranche of US$35 million on closing. An
additional US$15 million may be drawn on or before Q4 CY2018, and a
further US$25 million may be drawn on or before Q3 CY2019, in each
case as certain milestones are met. Interest on the facility
will accrue at a rate of 9.45% per annum with the interest only
period lasting up to 30 months upon the satisfaction of certain
conditions.
Mesoblast Chief Executive Dr Silviu Itescu stated: “This
facility demonstrates the confidence Hercules Capital has in our
compelling investment proposition. This credit facility enables us
to progress our commercial plans for MSC-100-IV as it moves towards
filing for regulatory approval in the United States for acute graft
versus host disease. A stronger balance sheet will allow Mesoblast
to focus on further business opportunities involving all of its
Tier 1 product candidates in order to maximize shareholder
value.”
Chief Investment Officer of Hercules Capital, Inc. Scott
Bluestein said: “Hercules is pleased to enter into this financing
partnership with Mesoblast at this important stage as it continues
to advance its lead cell therapies targeting patients with
significant unmet medical needs. This investment in Mesoblast
provides another example of our ability to finance life sciences
companies through multiple stages of development and through
various value inflection points.”
Cantor Fitzgerald & Co. acted as exclusive arranger and
financial advisor to Mesoblast in this transaction.
About MesoblastMesoblast Limited (ASX:MSB)
(Nasdaq:MESO) is a global leader in developing innovative
cell-based medicines. The Company has leveraged its proprietary
technology platform, which is based on specialized cells known as
mesenchymal lineage adult stem cells, to establish a broad
portfolio of late-stage product candidates. Mesoblast’s
allogeneic, ‘off-the-shelf’ cell product candidates target advanced
stages of diseases with high, unmet medical needs including
cardiovascular conditions, orthopedic disorders, immunologic and
inflammatory disorders and oncologic/hematologic conditions.
www.mesoblast.com
About Hercules CapitalHercules Capital, Inc.
(NYSE:HTGC) (“Hercules”) is the leading and largest specialty
finance company focused on providing senior secured venture growth
loans to high-growth, innovative venture capital-backed companies
in a broad variety of technology, life sciences and sustainable and
renewable technology industries. Since inception (December 2003),
Hercules has committed more than $7.3 billion to over 410 companies
and is the lender of choice for entrepreneurs and venture capital
firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact
info@htgc.com, or call 650.289.3060.
Forward-Looking StatementsThis press release
includes forward-looking statements that relate to future events or
our future financial performance and involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, levels of activity, performance or achievements to differ
materially from any future results, levels of activity, performance
or achievements expressed or implied by these forward-looking
statements. We make such forward-looking statements pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and other federal securities laws. Forward-looking
statements should not be read as a guarantee of future performance
or results, and actual results may differ from the results
anticipated in these forward-looking statements, and the
differences may be material and adverse. Forward- looking
statements include, but are not limited to, statements about:
Mesoblast’s ability to meet the necessary conditions and milestones
to draw down on the facility; the initiation, timing, progress and
results of Mesoblast’s preclinical and clinical studies, and
Mesoblast’s research and development programs; Mesoblast’s ability
to advance product candidates into, enroll and successfully
complete, clinical studies, including multi-national clinical
trials; Mesoblast’s ability to advance its manufacturing
capabilities; the timing or likelihood of regulatory filings and
approvals, manufacturing activities and product marketing
activities, if any; the commercialization of Mesoblast’s product
candidates, if approved; regulatory or public perceptions and
market acceptance surrounding the use of stem-cell based therapies;
the potential for Mesoblast’s product candidates, if any are
approved, to be withdrawn from the market due to patient adverse
events or deaths; the potential benefits of strategic collaboration
agreements and Mesoblast’s ability to enter into and maintain
established strategic collaborations; Mesoblast’s ability to
establish and maintain intellectual property on its product
candidates and Mesoblast’s ability to successfully defend these in
cases of alleged infringement; the scope of protection Mesoblast is
able to establish and maintain for intellectual property rights
covering its product candidates and technology; estimates of
Mesoblast’s expenses, future revenues, capital requirements and its
needs for additional financing; Mesoblast’s financial performance;
developments relating to Mesoblast’s competitors and industry; and
the pricing and reimbursement of Mesoblast’s product candidates, if
approved. You should read this press release together with our risk
factors, in our most recently filed reports with the SEC or on our
website. Uncertainties and risks that may cause Mesoblast’s actual
results, performance or achievements to be materially different
from those which may be expressed or implied by such statements,
and accordingly, you should not place undue reliance on these
forward-looking statements. We do not undertake any obligations to
publicly update or revise any forward-looking statements, whether
as a result of new information, future developments or
otherwise.
For further information, please
contact:
Julie MeldrumCorporate CommunicationsMesoblast T: +61 3 9639 6036
E: julie.meldrum@mesoblast.com
Schond GreenwayInvestor RelationsMesoblastT: +1 212 880 2060E:
schond.greenway@mesoblast.com
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