Apex Trader Funding (ATF) - News
Tevogen Bio Announces Up to $50 Million in Financing to Further Advance Operational Objectives
Supports expansion of Tevogen's ExacTcell™ platform toward additional clinical trials
Bolsters a financial path to positive cashflow and minimizes dilution
WARREN, N.J., May 10, 2024 (GLOBE NEWSWIRE) -- Tevogen Bio Holdings Inc. ("Tevogen" or "Tevogen Bio") (NASDAQ:TVGN), a clinical-stage specialty immunotherapy biotech pioneer developing off-the-shelf, genetically unmodified T cell therapeutics in oncology, neurology, and virology, has entered into a binding term sheet [with an existing investor] to secure up to $50 million of financing.
This financing supports Tevogen Bio's pursuit of expanding research and development efforts with a focus on continued clinical development of the company's initial product, TVGN 489, from its ExacTcell technology platform. In January 2023, Tevogen Bio announced positive proof-of-concept clinical trial results of TVGN 489 for treatment of high-risk patients. The financing will also be utilized to facilitate Tevogen Bio's efforts to start additional clinical trials for virally induced cancers and multiple sclerosis.
"The financing will help us to pursue our goals and we are gratified by the support of our existing shareholders," said Dr. Ryan Saadi, Tevogen Bio Founder and Chief Executive Officer. "We strongly believe Tevogen's business model of efficient operations and innovative thinking allows us to meaningfully expand our R&D efforts and investments in Tevogen AI with the support of this additional financing. I'm pleased we are taking this significant step to help patients by providing affordable and accessible personalized T cell therapies for large patient populations."
The financing consists of a combination of a $36 million line of credit to be provided to Tevogen Bio by an existing investor and $14 million in a private placement at a 30% discount to a future 10-day volume weighted average price after that price reaches $10 per share. The line of credit allows Tevogen Bio to access $1 million per month at an interest rate of the lower of (a) the daily SOFR plus 2.0% and (b) 7.0%, accruing quarterly and payable in common stock. Draws can be made under the line of credit for up to 36 months, and the maturity date of each draw will be four years after the draw. The ...