4D pharma PLC (AIM:DDDD, NASDAQ:LBPS, FRA:4DY) said it agreed a senior secured credit facility for up to US$30mln with Oxford Finance, a specialty finance firm that provides senior debt to life sciences and healthcare services companies.
The AIM-listed firm will receive the cash in three tranches: an initial tranche of US$12.5mln at closing, with the remaining US$7.5mln and US$10mln tranches dependent on the achievement of certain milestones.
The group will have to make monthly interest-only payments through to September 2023, or September 2024 based on milestones.
Oxford Finance was granted a warrant, exercisable for five years from today, to subscribe for 212,568 new ordinary shares in the company at US$1.18 per share. Further warrants will be granted as further tranches are drawn down.
"The credit facility from Oxford Finance provides access to additional capital strengthening our financial position and increasing our financial flexibility as we continue to advance our programs to bring first-in-class Live Biotherapeutics to market," said Duncan Peyton, chief executive of 4D Pharma.
"The initial US$12.5mln tranche of this financing extends our cash runway into the fourth quarter of 2022, with multiple clinical catalysts throughout 2021 and 2022."
Shares rose 3% to 86.97p on Thursday at the opening bell.