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Genocea Secures $27MM Term Loan From Hercules Technology Growth Capital

November 24, 2014, 07:14 AM
Filed Under: Medical

Genocea Biosciences, Inc., a company developing T cell-directed vaccines and immunotherapies, announced that it has entered into a loan and security agreement with Hercules Technology Growth Capital, Inc. for a term loan of up to $27.0 million.

"This additional access to capital enhances our financial flexibility during a period when we expect to announce data from both of our lead clinical programs,” said Jonathan Poole, chief financial officer of Genocea. “We are pleased to be working with the leading specialty finance company to help further our growth and support the continued development of our pipeline of novel product candidates. Hercules understands our business and has a strong conviction in our corporate strategy.”

The proceeds of the initial draw of $12.0 million will be used to repay Genocea’s existing term loan facility and to provide additional working capital for general corporate purposes. Genocea can draw up to an additional $5.0 million at its option through June 30, 2015. Two further tranches of $5.0 million each can be drawn down at Genocea’s option on or prior to December 15, 2015 subject to the achievement of certain clinical and corporate milestones.

Additionally, Genocea entered into an equity rights letter agreement with Hercules pursuant to which Hercules purchased 223,463 shares of Genocea’s common stock at $8.95 per share, the closing price of Genocea’s common stock as reported on The NASDAQ Global Market on November 19, 2014.

Hercules Technology Growth Capital, Inc. is a leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and energy & renewable technology industries, at all stages of development. Since inception, Hercules has committed more than $4.6 billion to over 300 companies and is a lender of choice for entrepreneurs and venture capital firms seeking growth capital financing.

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