TRACON Pharmaceuticals Inc (NASDAQ:TCON) has announced a $35 million non-dilutive long-term debt facility with Runway Growth Capital LLC to support its ongoing pivotal ENVASARC trial to treat cancer and for general corporate purposes.
The biopharma said that $10 million of the $35 million loan was funded upon closing, and the additional $25 million available may be funded upon achieving "certain clinical milestones and at Runway's discretion".
"This non-dilutive financing extends our cash runway to support the robust accrual of the pivotal ENVASARC trial while we await completion of the Phase 1 TJ4309 clinical trial that triggers I-Mab's license termination option for $9 million as well as the outcome of the binding arbitration with I-Mab, both of which are expected this quarter," said the CEO of TRACON, Charles Theuer in a statement.
"We are pleased to partner with Runway, which seeks long-term relationships with late-stage life science companies who will benefit from non-dilutive capital."
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Igor DaCruz, the managing director of Life Sciences at Runway, added: "We are excited to enter into this facility with TRACON to help them achieve their goal of bringing envafolimab, the world's first subcutaneous checkpoint inhibitor, to market in the underserved indication of sarcoma."
The loan has a 24 month 'interest-only' period followed by 24 monthly payments of the principal and interest.
In connection with the debt financing, TRACON issued Runway warrants to buy up to 150,753 of its shares at $1.99 per share.
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