Cell Therapeutics, Inc. has announced that it has entered into a loan agreement with Hercules Technology Growth Capital, Inc. (NYSE: HTGC) providing for a senior secured term loan of up to $15 million.
"The proceeds from this loan facility are expected to provide us with additional operating capital to advance our Phase 3 clinical development programs," said James A. Bianco, M.D., President and CEO of CTI.
Bianco continued, "Our primary focus remains on our near-term strategic goals of completing the Phase 3 studies of pacritinib in patients with myelofibrosis, driving adoption of PIXUVRI® in Europe and securing non-equity based operating capital through strategic partnerships."
The first $10 million of the term loan was funded at closing, and the remaining $5 million is available at CTI's option at any time from November 30 through December 15, 2013, subject to the satisfaction of certain conditions.
The term loan is repayable over 42 months after closing, including an initial interest-only period of 12 months after closing.
CTI granted Hercules warrants to purchase shares of common stock in an amount of up to 5 percent of the total loan commitment.
Further information with respect to the loan agreement with Hercules is contained in a Current Report on Form 8-K filed by CTI with the Securities and Exchange Commission.