Cerulean Pharma Inc., a leader in Dynamic Tumor Targeting, has entered into a loan and security agreement with Hercules Technology Growth Capital, Inc. for a term loan of up to $26.0 million and completed a private placement for $1.0 million of Cerulean common stock with Hercules.
“The Hercules debt facility provides Cerulean with significant financial resources and flexibility as we advance the clinical development of our two platform-generated nanoparticle-drug conjugates, CRLX101 and CRLX301,” said Paul Friedman, M.D., Executive Chairman of Cerulean. “Hercules is a recognized leader in growth financing, and we appreciate their insight and support and look forward to our successful partnership.”
A first tranche of $15.0 million was funded upon execution of the loan agreement and will be used to provide additional working capital for general corporate purposes and to repay Cerulean’s existing term loan facility. Under the terms of the loan agreement, Cerulean may, but is not obligated, to draw two additional tranches, one of up to $5.0 million and the other of up to $6.0 million, prior to December 15, 2015, subject to the achievement of certain corporate and clinical milestones.