SAN DIEGO, Sept. 30, 2015 /PRNewswire/ -- Mast Therapeutics,
Inc. (NYSE MKT: MSTX), a clinical-stage biopharmaceutical company
leveraging its molecular adhesion and sealant technology (MAST)
platform to develop novel therapies for sickle cell disease, heart
failure, and stroke, today announced that it signed an amendment to
the Company's existing Loan and Security Agreement with Hercules
Technology Growth Capital, Inc. (NYSE: HTGC). The agreement
provides for a $15 million debt
facility, $5 million of which was
funded to the Company on August 11,
2015. Prior to the amendment, the Company was only able to
access the second advance of $10
million if it achieved certain clinical development and
financial milestones by December 31,
2015, which included receipt of $15
million in net cash proceeds from a strategic partnership
and/or equity financing. The amendment removed those funding
conditions and the Company drew the second advance on September 28, 2015. Under the amended
agreement, the net cash proceeds condition is deferred until
April 30, 2016, a date which is
expected to follow top-line data from EPIC, and this requirement
would be eliminated entirely upon achievement of positive data from
EPIC. If the clinical and updated financial conditions are
not met, the second advance of $10
million would be repaid on April 30,
2016, without any prepayment penalty.
Brandi Roberts, the Company's
Chief Financial Officer, said: "We are pleased to have the ongoing
support of Hercules, a highly recognized leader in growth
financing. We believe that the accelerated funding
underscores Hercules' confidence in Mast and our development
programs. The funds received under the loan agreement provide
us with additional financial resources and flexibility as we near
the completion of enrollment in EPIC and prepare to submit a New
Drug Application to the Food and Drug Administration."
About Mast Therapeutics
Mast Therapeutics, Inc. is a publicly traded biopharmaceutical
company headquartered in San
Diego, California. The Company is leveraging its MAST
platform, derived from over two decades of clinical, nonclinical
and manufacturing experience with purified and non-purified
poloxamers, to develop vepoloxamer (also known as MST-188), its
lead product candidate, for serious or life-threatening diseases
and conditions typically characterized by impaired microvascular
blood flow and damaged cell membranes. The Company is also
developing AIR001, a sodium nitrite solution for inhalation via
nebulizer, for the treatment of heart failure with preserved
ejection fraction (HFpEF).
Vepoloxamer is an investigational new drug being tested in a
pivotal Phase 3 study called EPIC for the treatment of
vaso-occlusive crisis in patients with sickle cell disease.
AIR001 is an investigational new drug being tested in two
institution-sponsored Phase 2a studies in patients with HFpEF. More
information can be found on the Company's web site at
www.masttherapeutics.com. (Twitter: @MastThera)
Mast Therapeutics™ and the corporate logo are trademarks of Mast
Therapeutics, Inc.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) is
the leading specialty finance company focused on providing senior
secured venture growth loans to high-growth, innovative venture
capital-backed and public companies in the technology,
biotechnology, life sciences, healthcare, and energy &
renewable technology industries. Since inception
(December 2003), Hercules has
committed more than $5.5 billion to
over 325 companies and is the lender of choice for entrepreneurs,
venture capital firms and public companies seeking growth capital
financing. Companies interested in learning more about
financing opportunities should contact info@htgc.com, or call
650.289.3060.
Forward Looking Statements
Mast Therapeutics cautions you that statements included in this
press release that are not a description of historical facts are
forward-looking statements that are based on the Company's current
expectations and assumptions. Such forward-looking statements
include, but are not limited to, statements relating to the
Company's future financial condition, prospects for successful
development and commercialization of, the Company's investigational
drugs, vepoloxamer and AIR001, and anticipated timing of
achievement of development milestones, such as commencement and
completion of clinical studies or regulatory activities, and of
announcement of study data. Among the factors that could
cause or contribute to material differences between the Company's
actual results and the expectations indicated by the
forward-looking statements are risks and uncertainties that
include, but are not limited to: the risk that the Company will be
required to repay $10 million of its
debt significantly earlier than the scheduled maturity date if it
does not achieve all of the clinical development and financial
conditions required to avoid early repayment and the risk that it
may be required to repay all $15
million of its debt upon occurrence of an event of default,
which includes any event that the lender interprets as a material
adverse effect; the uncertainty of outcomes in ongoing and future
studies of the Company's product candidates and the risk that its
product candidates, including vepoloxamer, may not demonstrate
adequate safety, efficacy or tolerability in one or more such
studies, including EPIC; delays in the commencement or completion
of clinical studies, including as a result of difficulties in
obtaining regulatory agency agreement on clinical development plans
or clinical study design, opening trial sites, enrolling study
subjects, manufacturing sufficient quantities of clinical trial
material, being subject to a "clinical hold," and/or suspension or
termination of a clinical study, including due to patient safety
concerns or lack of funding; the risk that, even if planned
clinical studies are successful, the FDA or other regulatory
agencies may determine they are not sufficient to support a new
drug application; the potential that, even if clinical studies of a
product candidate in one indication are successful, clinical
studies in another indication may not be successful; the potential
for additional nonclinical or clinical studies to be required prior
to initiation of a planned clinical study; the Company's reliance
on contract research organizations (CROs), contract manufacturing
organizations (CMOs), and other third parties to assist in the
conduct of important aspects of development of its product
candidates, including clinical studies, manufacturing, and
regulatory activities for its product candidates, and that such
third parties may fail to perform as expected; the Company's
ability to obtain additional funding on a timely basis or on
acceptable terms, or at all; the potential for the Company to
delay, reduce or discontinue current and/or planned development
activities, including clinical studies, partner its product
candidates at inopportune times or pursue less expensive but
higher-risk and/or lower return development paths if it is unable
to raise sufficient additional capital as needed; the risk that,
even if the Company successfully develops a product candidate in
one or more indications, it may not realize commercial success and
may never achieve profitability; the risk that the Company is not
able to adequately protect its intellectual property rights,
through patents or otherwise, and prevent competitors from
duplicating or developing equivalent versions of its product
candidates or that the use or manufacture of its products or
product candidates infringe the proprietary rights of others; and
other risks and uncertainties more fully described in the Company's
press releases and periodic filings with the Securities and
Exchange Commission. The Company's public filings with the
Securities and Exchange Commission are available at
www.sec.gov.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date when made. Mast
Therapeutics does not intend to revise or update any
forward-looking statement set forth in this press release to
reflect events or circumstances arising after the date hereof,
except as may be required by law.
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SOURCE Mast Therapeutics, Inc.