Business
Jaguar Health Announces Closing of $6.0 Million Issuance and Sale of Designation-backed Note Related to Possible Tropical Disease Priority Review Voucher
This additional non-dilutive financing will support development program for lechlemer for the indication of the symptomatic relief of diarrhea and dehydration
About this update from Jaguar Health, Inc.
[{"type":"text","content":"This additional non-dilutive financing will support development program for lechlemer for the indication of the symptomatic relief of diarrhea and dehydration in cholera patients and severe acute watery diarrheaSAN FRANCISCO, CA / ACCESSWIRE / January 20, 2021 / Jaguar Health, Inc. (NASDAQ:JAGX) (\"Jaguar\" or the \"Company\") announced today that the Company has signed a definitive agreement (the \"Agreement\") related to the previously announced term sheet for the issuance and sale of a secured promissory note in the principal amount of $6.0 million (the \"Note\") to Streeterville Capital, LLC (the \"Investor\"). The sale of the Note closed on January 19, 2021.Per the terms of the Agreement, in addition to return of principal and accrued interest at prime interest rate on the Note, the Investor has a right to 18% of the gross proceeds (the \"Return Bonus\") from the sale of a possible tropical disease priority review voucher (\"TDPRV\") that Jaguar's wholly owned subsidiary, Napo Pharmaceuticals, Inc. (\"Napo\"), plans to pursue as incentive for the development of Napo's lechlemer drug product candidate for the indication of the symptomatic relief of diarrhea in cholera patients.Jaguar has the right to redeem the Note at a 12.5% premium any time after the six-month anniversary of the Agreement effective date and before the release of data from a pivotal lechlemer trial for the cholera-related indication. Once the Note is paid in full, the Return Bonus will decrease to 1.0% in perpetuity.\"We at Jaguar and Napo find it very rewarding to work in the pharmaceutical industry and be in a position to possibly help address such an important global health need and meet stakeholder expectations,\" stated Lisa Conte, Jaguar's founder, president, and CEO. \"The proposed indication for lechlemer represents a potential opportunity for Jaguar to have a significant impact on mortality, and we are thankful to the FDA for creating the priority review voucher program in an effort to drive development of drugs to benefit patients suffering from serious but often neglected diseases.\"\"We plan to use funds generated by the Agreement to fund clinical development of lechlemer for the planned cholera-related indication. Moving this second-generation anti-secretory agent into clinical development gives the Company ‘another shot on goal' - and we beli...