Candel Therapeutics Inc (NASDAQ:CADL) said it has inked a five-year, $130 million term loan facility with Trinity Capital to strengthen its balance sheet and support late-stage development and potential commercialization of its cancer immunotherapies.
The facility includes four tranches, with $50 million drawn at closing. An additional $50 million may be accessed upon reaching regulatory, clinical, and operational milestones, while a final $30 million tranche is available at the lender’s discretion.
The financing, combined with cash and cash equivalents of $87.2 million, “significantly strengthens” the biotech’s balance sheet, said CFO Charles Schoch.
“It positions the company for the initiation of a pivotal phase 3 clinical trial of CAN-2409 in non-small cell lung cancer (NSCLC) in the second quarter of 2026, and supports our potential launch in early localized prostate cancer,” Schoch told shareholders.
The loan carries an initial annual interest rate of 10.25%, fixed or floating at Candel’s option, and includes a 36-month interest-only period, extendable by 12 months upon meeting a commercial milestone.
Trinity Capital’s Senior Managing Director of Life Sciences Rob Lake said the investment reflects the lender’s confidence in Candel’s “strong clinical data and innovative approach,” noting the large commercial potential in prostate and lung cancers.
In parallel, Candel said it would prioritize development of CAN-2409 for prostate cancer and NSCLC, while seeking externally funded partnerships for its pancreatic ductal adenocarcinoma program.
Candel CEO Paul Peter Tak said the company will also advance its CAN-3110 program in recurrent glioblastoma, supported by positive interim data from an ongoing phase 1b trial funded by the Break Through Cancer foundation.
Proceeds from the first tranche will refinance an existing loan agreement with First-Citizens Bank & Trust Company, while supporting working capital, corporate purposes, and preparations for a Biologics License Application for CAN-2409 in prostate cancer expected in late 2026, Candel said.