LOS ANGELES, Feb. 8, 2016 /PRNewswire/ -- CytRx
Corporation (NASDAQ: CYTR), a biopharmaceutical research and
development company specializing in oncology, today announced that
it has entered into a long-term loan and security agreement with
Hercules Technology Growth Capital, Inc. and Hercules Technology
III, L.P. for up to $40 million in
financing.
CytRx has received the first $25
million of financing under the loan and security
agreement. The proceeds will be used for
pre-commercialization and manufacturing activities for
aldoxorubicin, clinical development, and general corporate
purposes. A second tranche of up to $15
million will be available on or before December 31, 2016 if CytRx announces positive
data from its global pivotal Phase 3 clinical trial of
aldoxorubicin for the treatment of soft tissue sarcoma and
initiates a clinical trial of a second novel drug candidate based
on CytRx's LADR technology platform.
"This financing is an important step for CytRx as we complete
our pivotal, global Phase 3 trial with aldoxorubicin and prepare
for its commercial launch," said Steven A.
Kriegsman, Chairman and CEO.
"We are pleased to team up with CytRx in advance of their
results from the pivotal Phase 3 clinical trial. This
financing will support CytRx through this key milestone and the
future launch of aldoxorubicin," said Anup
Arora, Managing Director at Hercules Technology.
The financing is in the form of a 48-month term loan bearing
interest at a rate of 9.5% per annum, subject to the variability of
the prime interest rate. In the first year of the long-term loan,
only interest is payable. If the regulatory milestone
relating to data from the aldoxorubicin Phase 3 trial is positive,
the interest-only period will be extended for an additional six
months. If the second tranche of $15
million is funded to CytRx under the loan and security
agreement, the interest-only period will be extended for another
six months.
In connection with the loan and security agreement, CytRx paid
and issued to the lenders certain fees of approximately
$450,000 and warrants to purchase
approximately 630,000 shares of common stock of CytRx at an
exercise price of $2.05 per
share.
Armentum Partners, through Trump Securities, LLC and Reedland
Capital Partners, through Merriman Capital, Inc., a registered
broker-dealer and member FINRA/SIPC, acted as financial advisors to
CytRx in connection with the transaction.
About CytRx Corporation
CytRx Corporation is a biopharmaceutical research and
development company specializing in oncology. CytRx currently is
focused on the clinical development of aldoxorubicin, its improved
version of the widely used chemotherapeutic agent doxorubicin, and
DK049, a novel drug conjugate which is expected to enter clinical
trials in 2016. CytRx is also expanding its pipeline of
oncology candidates at its laboratory facilities in Freiburg,
Germany, through its LADR™ (Linker
Activated Drug Release) technology platform, a discovery engine
designed to leverage CytRx's expertise in albumin biology and
linker technology for the development of a new class of anti-cancer
therapies.
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 companies in the technology, biotechnology, life
sciences, healthcare, and energy & renewable technology
industries. Since inception (December
2003), Hercules has committed more than $5.7 billion to over 335 companies and is the
lender of choice for entrepreneurs and venture capital firms
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
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended. Such statements involve risks and uncertainties that
could cause actual events or results to differ materially from the
events or results described in the forward-looking statements,
including risks relating to the outcome, timing and results of
CytRx's clinical testing of aldoxorubicin and preclinical testing
of its LADR™ linker technology platform, and the risks and
uncertainties described in the most recent annual and quarterly
reports filed by CytRx with the Securities and Exchange Commission
and current reports filed since the date of CytRx's most recent
annual report. All forward-looking statements are based upon
information available to CytRx on the date the statements are first
published. CytRx undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Company Contact:
CytRx Corporation
David J. Haen
Vice President, Business Development and Investor Relations
(310) 826-5648, ext 304
dhaen@cytrx.com
Investor Relations:
Alexander Capital, LP
(855) 288-ALEX (2539)
cytrx@alexandercapitallp.com
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SOURCE CytRx Corporation