Business
TScan Therapeutics Secures Convertible Debt Facility for up to $60 Million with K2 HealthVentures
Financing supports management’s focus on clinical execution and advancing its ImmunoBank Initial $30 million tranche extends cash runway into the second
About this update from Tscan Therapeutics, Inc.
[{"type":"text","content":"Financing supports management’s focus on clinical execution and advancing its ImmunoBank Initial $30 million tranche extends cash runway into the second quarter of 2024 WALTHAM, Mass., Sept. 12, 2022 (GLOBE NEWSWIRE) -- TScan Therapeutics, Inc. (Nasdaq: TCRX), a clinical-stage biopharmaceutical company focused on the development of T cell receptor (TCR) engineered T cell therapies (TCR-T) for the treatment of patients with cancer, today announced that it has entered into a debt financing facility for up to $60 million with K2 HealthVentures (K2HV), a healthcare-focused specialty finance company. “Access to the first $30 million tranche of this substantive additional capital, along with the current cash on hand, will provide TScan with a cash runway well into the second quarter of 2024. This will allow us to achieve additional value-creating milestones across both our solid tumor and hematologic malignancy clinical programs,” said David P. Southwell, President and Chief Executive Officer. “We anticipate building out our ImmunoBank with the filing of IND applications in our solid tumor program for two TCRs in 2022 as planned, to be followed by IND filings for two additional TCRs in the first half of 2023 that will enable us to launch multiplexing clinical trials for solid tumors.” TScan drew $30 million from K2HV upon closing of the loan agreement. The Company has the option to draw the remaining tranches subject to certain conditions and by mutual agreement of TScan and K2HV to further support development of additional programs and/or business development. The borrowings under the loan agreement have an interest rate equal to the greater of 8.75%, or the Prime Rate plus 4.75%, subject to a cap of 9.90%. The first tranche of the loan is convertible at the option of K2HV into common shares of TScan at a conversion price of approximately $4.785 per share. Future tranches will be convertible as specified in the agreement. In addition, TScan has the ability to repay the loan at any time either in cash or in shares, subject to applicable premiums as specified in the loan agreement. Further information with respect to the loan agreement is set forth in a Form 8-K filed by TScan with the Securities and Exchange Commission on September 12, 2022. Parag Shah, Founding Managing Director and CEO of K2 HealthVentures, said, “We are pleased to ...