Business
Kura Oncology Announces Financing Transactions with Bristol Myers Squibb and Hercules Capital, Providing Access to up to $150 Million
– $25 million equity investment from Bristol Myers Squibb at $18.25 per share – – Term loan facility from Hercules Capital provides up to $125 million – –
About this update from Kura Oncology, Inc.
[{"type":"text","content":"– $25 million equity investment from Bristol Myers Squibb at $18.25 per share – – Term loan facility from Hercules Capital provides up to $125 million – – Proceeds extend Kura’s cash runway into 2026, if term loan is fully drawn – SAN DIEGO, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Kura Oncology, Inc. (Nasdaq: KURA), a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer, today announced a $25 million equity investment from Bristol Myers Squibb (NYSE: BMY) and a term loan facility with access to up to $125 million from Hercules Capital, Inc. (NYSE: HTGC). If the term loan is fully drawn, proceeds from these two transactions together with existing cash are expected to fund Kura’s current operating plan into 2026. “Bristol Myers Squibb has deep expertise and history in advancing transformational cancer treatments,” said Troy Wilson, Ph.D., J.D., President and Chief Executive Officer of Kura Oncology. “This equity investment strengthens the relationship between our organizations and enables Bristol Myers Squibb to provide valuable strategic input into our global development strategy. We are honored and excited to have their support and look forward to their input as we work to deliver innovative science with the potential to benefit patients.” “In addition, we are grateful for the support of Hercules Capital, a company with a long history of investing in innovative biotechnology companies,” Dr. Wilson continued. “Together, these transactions augment our already strong balance sheet and give us significant financial strength and flexibility as we prepare to advance into the registration-enabling portion of KOMET-001 for ziftomenib, initiate multiple combination studies for ziftomenib in earlier lines of acute myeloid leukemia and continue to expand and invest in our farnesyl transferase inhibitor programs.” Kura has agreed to sell 1,370,171 shares to Bristol Myers Squibb at a price of $18.25 per share for gross proceeds of $25 million. The shares of common stock were offered and sold to Bristol Myers Squibb in a registered direct offering. In connection with the equity investment, Bristol Myers Squibb will appoint a member to Kura’s Global Steering Committee. Kura will maintain full ownership and control of its programs and operations. Under the terms of the loan agr...