Evelo Biosciences, Inc. (Nasdaq:EVLO), a clinical stage
biotechnology company developing a novel platform of orally
delivered medicines acting on the small intestinal axis, SINTAX,
today announced it has entered into a senior secured loan agreement
with Horizon Technology Finance Corporation (Horizon) (Nasdaq:
HRZN), a leading specialty finance company that provides capital in
the form of secured loans to venture capital backed companies in
the technology, life science, healthcare information and services
and sustainability industries. The $45 million term loan, which
provides for three years of interest-only payments followed by a
two-year amortization period, replaces the Company’s existing
senior secured debt which would have begun amortizing in March
2023.
“We are pleased to enter into this partnership with Horizon, as
this strategic refinancing enhances our financial position as we
look ahead to executing on our upcoming key catalysts,” said
Marella Thorell, Chief Financial Officer of Evelo. “We are
currently on-track to deliver three Phase 2 clinical milestones
throughout 2023: first, early in the first quarter of 2023, data
from the first three cohorts in the Phase 2 trial of EDP1815 in
atopic dermatitis; second, in the second quarter of 2023, data from
the fourth cohort - the faster release capsule – in the Phase 2
trial of EDP1815 in atopic dermatitis; and third, in the second
half of 2023, data from patients in the Phase 2 trial of EDP2939,
our first extracellular vesicle (EV) product candidate, in
psoriasis.”
“We are excited to work with Evelo in support of their vision to
dramatically improve healthcare by harnessing their novel SINTAX
platform for the broad treatment of all stages of inflammatory
disease,” said Gerald A. Michaud, President of Horizon. “Their
pipeline candidates EDP1815 and EDP2939, in development for atopic
dermatitis and psoriasis, are great examples of the potential of
SINTAX medicines. We are pleased to support Evelo’s continued
development.”
For a complete description of the terms applicable to the senior
secured debt, please refer to the full text of the related venture
loan and security agreement, which will be filed by Evelo as an
exhibit to a Current Report on Form 8-K with the Securities and
Exchange Commission.
About Evelo BiosciencesEvelo Biosciences is a
clinical stage biotechnology company developing a novel platform of
orally delivered medicines acting on the small intestinal axis,
SINTAX, with systemic therapeutic effects. SINTAX plays a central
role in governing the immune, metabolic, and neurological systems.
The Company’s product candidates are pharmaceutical preparations of
single strains of microbes or their extracellular vesicles (EVs).
Evelo’s vision is to create therapies that are effective, safe,
well-tolerated, and affordable to improve the lives of the billions
of people living with inflammatory diseases. Evelo initially is
developing EDP1815 in psoriasis and atopic dermatitis and EDP2939
in psoriasis. If shown to be effective in inflammatory disease
mediated by the Th1, Th2 or Th17 inflammatory pathways, these same
investigational medicines could be effective in additional
inflammatory diseases, such as psoriatic and other forms of
arthritis, asthma, allergy, and inflammatory bowel disease.
For more information, please
visit www.evelobio.com and engage with Evelo
on LinkedIn.
About Horizon Technology Finance Horizon
Technology Finance Corporation (NASDAQ: HRZN) is a leading
specialty finance company that provides capital in the form of
secured loans to venture capital backed companies in the
technology, life science, healthcare information and services, and
sustainability industries. The investment objective of Horizon is
to maximize its investment portfolio's return by generating current
income from the debt investments it makes and capital appreciation
from the warrants it receives when making such debt investments.
Horizon is headquartered in Farmington, Connecticut, with a
regional office in Pleasanton, California, and investment
professionals located in Austin, Texas, Chicago, Illinois, Reston,
Virginia and Portland, Maine. To learn more, please visit
horizontechfinance.com.
Forward Looking StatementsThis press release
contains forward-looking statements, including within the meaning
of the Private Securities Litigation Reform Act of 1995. All
statements contained in this press release that do not relate to
matters of historical fact should be considered forward-looking
statements, including statements concerning the development of
EDP1815 and EDP2939, the promise and potential impact of our
product candidates, the potential patient population which our
product candidates might reach, potential new therapeutic areas not
yet under development, the timing of and plans for clinical trials,
the timing and results of clinical trial readouts, and the impact
of the debt refinancing on the Company’s future financial
prospects.
These forward-looking statements are based on management’s
current expectations. These statements are neither promises nor
guarantees, but involve known and unknown risks, uncertainties and
other important factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements, including, but not limited to, the
following: the impact of the COVID-19 pandemic on our operations,
including our preclinical studies and clinical trials, and the
continuity of our business; we have incurred significant losses,
are not currently profitable and may never become profitable; our
projected cash runway; our need for additional funding; our ability
to meet our debt obligations (including restrictive and operational
covenants under the terms of refinanced debt); our ability to cure
or satisfactorily resolve any default arising from our debt
agreements; our limited operating history; our unproven approach to
therapeutic intervention; our ability to address regulatory
questions and the likelihood of regulatory filings and approvals;
the lengthy, expensive, and uncertain process of clinical drug
development, including potential delays in regulatory approval; our
reliance on third parties and collaborators to expand our microbial
library, conduct our clinical trials, manufacture our product
candidates, and develop and commercialize our product candidates,
if approved; our lack of experience in manufacturing, selling,
marketing, and distributing our product candidates; failure to
compete successfully against other drug companies; protection of
our proprietary technology and the confidentiality of our trade
secrets; potential lawsuits for, or claims of, infringement of
third-party intellectual property or challenges to the ownership of
our intellectual property; our patents being found invalid or
unenforceable; risks associated with international operations; our
ability to retain key personnel and to manage our growth; the
potential volatility of our common stock; our management and
principal stockholders have the ability to control or significantly
influence our business; costs and resources of operating as a
public company; unfavorable or no analyst research or reports; and
securities class action litigation against us.
These and other important factors discussed under the caption
"Risk Factors" in our Quarterly Report on Form 10-Q for the period
ended September 30, 2022, and our other reports filed with the
United States Securities and Exchange Commission, could cause
actual results to differ materially from those indicated by the
forward-looking statements made in this press release. Any such
forward-looking statements represent management's estimates as of
the date of this press release. While we may elect to update such
forward-looking statements at some point in the future, except as
required by law, we disclaim any obligation to do so, even if
subsequent events cause our views to change. These forward-looking
statements should not be relied upon as representing our views as
of any date subsequent to the date of this press release.
Evelo
ContactsInvestors:Kendra Sweeney,
239-877-7474ksweeney@evelobio.com
Media:Jessica Cotrone,
978-760-5622jcotrone@evelobio.com
Horizon
Contacts:Investors:Garrett Edson,
860-284-6450ir@horizontechfinance.com
Media:Chris Gillick,
646-677-1819pr@horizontechfinance.com
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