Press release
Geron Corporation Announces Expansion of Existing Loan Facility
Up to $50 Million in Additional Non-Dilutive Capital Potentially Available in 2023 FOSTER CITY, Calif.--(BUSINESS WIRE)-- Geron Corporation (Nasdaq: GERN), a
About this update from Geron Corporation
[{"type":"text","content":"\nUp to $50 Million in Additional Non-Dilutive Capital Potentially Available in 2023\n\n FOSTER CITY, Calif.--(BUSINESS WIRE)--\nGeron Corporation (Nasdaq: GERN), a late-stage clinical biopharmaceutical company, today announced an amendment to expand its existing loan facility with Hercules Capital, Inc. (NYSE: HTGC) and Silicon Valley Bank, from up to $75 million to up to $125 million.\n\n“This expansion of our debt facility provides potential access of up to $50 million in additional non-dilutive capital in 2023, the year in which we expect top-line results from the Phase 3 IMerge trial in lower risk myelodysplastic syndromes in early January, and if the data are supportive, U.S. and EU regulatory filings thereafter,” said Olivia K. Bloom, Executive Vice President and Chief Financial Officer. “We believe these potential additional debt proceeds, when added to our current financial resources and the projected proceeds from exercises of currently outstanding warrants in 2023, will be sufficient to fund our projected level of operations, which includes preparatory activities for potential U.S. commercial launch of imetelstat in lower risk MDS, until the middle of 2024. Maintaining a strong balance sheet during this critical time period provides important financial and strategic optionality as Geron transforms from late-stage development to a commercial entity.”\n\nOf the aggregate $125 million loan facility, $50 million is currently outstanding. The remaining $75 million is potentially available to Geron in four tranches. The first tranche of $20 million is available until September 15, 2023, subject to the achievement of certain clinical and financial milestones. The second tranche of $10 million is available to the Company through December 15, 2023, subject to the achievement of certain clinical and regulatory milestones, and satisfaction of certain capitalization requirements. The third tranche of $20 million is available to the Company from September 15, 2023 until September 15, 2024, subject to the achievement of certain clinical and regulatory milestones, and satisfaction of certain capitalization requirements. The final tranche of $25 million is available to the Company through year-end 2024, subject to approval from the lenders.\n\n“We’re very excited to expand our partnership with Geron to support the Company’s efforts i...