PolyMedix Inc. is a biotechnology company focused on the development of new therapeutic drugs for the treatment of acute cardiovascular disorders and infectious diseases. The company’s compounds are based on biomimetics: non-peptide small molecule drug candidates and polymers that mimic the activity of proteins.
The company announced today that it has secured a $14 million credit facility with Hercules Technology II L.P. Hercules Technology is an affiliate of Hercules Technology Growth Capital Inc. (NASDAQ: HTGC), a specialty finance company providing debt and equity growth capital to technology and life science companies at all stages of development.
PloyMedix expects that the proceeds may be used to fund certain Phase 3 enabling activities for its two lead compounds, PMX-60056 and PMX-30063, including manufacturing and toxicology studies in addition to general corporate purposes. The $14 million credit facility with Hercules provides for an initial advance of $10 million and the ability to obtain the other $4 million at a later date. There will be interest-only payments for at least 9 months as it bears annual interest at the greater of 12.35% or prime plus 7.1%, not to exceed 14%.
Repayment of principal does not begin until 2011. As part of the financing, Hercules received a warrant to purchase 627,586 shares of PolyMedix at $1.16 a share or an exercise price equal to the 20-day volume weighted average price of the company’s common stock prior to the closing of the facility. If PolyMedix borrows the additional $4 million, the warrant would become exercisable for an additional 156,896 shares at a price of $1.16 per share.
In addition, PolyMedix has filed a shelf registration statement of Form S-3 with the Securities and Exchange Commission (SEC). While the company does not have the immediate intention to conduct an offering of securities the registration statement, when declared effective by the SEC, is designed to provide PolyMedix the flexibility to offer and sell from time to time, up to $100 million of company securities in the future.