Business
Rani Therapeutics Enters into $45 Million Loan Agreement to Support Ongoing RaniPill® Platform Advancement and Clinical Pipeline Development
Extends Rani’s projected cash runway into mid-2024 SAN JOSE, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) -- Rani Therapeutics Holdings, Inc. (“Rani Therapeutics”
About this update from Rani Therapeutics Holdings, Inc.
[{"type":"text","content":"Extends Rani’s projected cash runway into mid-2024\nSAN JOSE, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) -- Rani Therapeutics Holdings, Inc. (“Rani Therapeutics” or “Rani”) (Nasdaq: RANI), a clinical-stage biotherapeutics company focused on the oral delivery of biologics, today announced that it has entered into a loan agreement with Avenue Venture Opportunities Fund, L.P. (“Avenue”) for up to $45 million of funding. This financing is expected to support the continued advancement of the RaniPill platform and ongoing clinical development of the Company’s drug pipeline. “We are pleased to secure this additional capital, which strengthens our financial position and balances our near-term capital requirements to support the continued advancement of the RaniPill platform, including the RaniPill HC (high-capacity) device, and development of our pipeline, extending our cash runway to mid-2024,” said Svai Sanford, Chief Financial Officer of Rani Therapeutics. “Looking ahead to the remainder of the year, Rani expects to announce topline Phase 1 data for RT-102 – the RaniPill capsule containing our proprietary formulation of parathyroid hormone PTH (1-34) for the treatment of osteoporosis – as well as initiate an additional Phase 1 clinical study.” Under the loan agreement, Rani will receive $15 million of the initial $30 million tranche at closing, with the remaining $15 million available for draw at the Company’s discretion in the fourth quarter of 2022. Rani has the right to request an additional $15 million of funds in the future if certain conditions and milestones are met. The loan carries an interest-only period of 24 months (extendable to 30 months upon satisfaction of certain conditions), and the principal is repayable in equal monthly payments over the remaining period of the 48-month total term. The loan bears interest at a variable rate equal to the greater of (A) prime, plus 5.6% and (B) 10.35%. Avenue will receive a warrant to purchase common stock of the Company. Rani Therapeutics Rani Therapeutics is a clinical stage biotherapeutics company focused on advancing technologies to enable the development of orally administered biologics. Rani has developed RaniPill capsules, which are a novel, proprietary and patented platform technology, intended to replace subcutaneous injection or intravenous infusion of biologics with oral dosi...