enGene Holdings, a clinical-stage genetic medicines company whose lead EG-70 program is in a pivotal study for BCG-unresponsive non-muscle invasive bladder cancer (NMIBC), entered into an amended USD $50 million loan agreement with Hercules Capital. Under the Loan Agreement, which has a term of four years, $22.5 million has been advanced to enGene under a non-revolving term loan and, subject to certain clinical and financial milestones, up to a further $27.5 million in loan proceeds may be available subject to satisfaction of certain terms and conditions.
"We are thrilled to expand our relationship with Hercules Capital and obtain additional resources to support our development efforts," said Jason Hanson, Chief Executive Officer of enGene. "We believe that EG-70 could transform how patients with BCG-unresponsive NMIBC are managed, and the proceeds from this term loan facility will further support the development of this program in BCG-unresponsive NMIBC and additional clinical applications. We expect that the capital obtained will meaningfully extend the Company's cash runway, with cash supporting operations well beyond the anticipated EG-70 interim data readout."
"Hercules Capital is pleased to collaborate once again with enGene as it advances EG-70 as an entirely new genetic medicine approach to treat NMIBC. This new, increased commitment from Hercules exemplifies our approach as long-term capital partners to our portfolio companies and reflects our dedication to financing innovative life sciences companies through development and into commercialization," said R. Bryan Jadot, Senior Managing Director and Group Head of Hercules Capital. The proceeds of the Term Loan Facility will be used for working capital and general corporate purposes of the Company, as well as to refinance enGene's existing indebtedness under the original loan agreement with Hercules dated December 30, 2021.
Under the terms of the agreement, the principal amount outstanding and all accrued but unpaid interest under the Term Loan Facility shall be repaid on or before January 1, 2028 (or such later dates as to which the maturity date may be extended from time to time in accordance with the terms of the Loan Agreement).