On December 16, 2020 Soligenix, Inc. (Nasdaq: SNGX) (Soligenix or the Company), a late-stage biopharmaceutical company focused on developing and commercializing products to treat rare diseases where there is an unmet medical need, reported that it has entered into a $20 million convertible debt financing agreement with Pontifax Medison Debt Financing (Pontifax), the healthcare-dedicated venture and debt fund of the Pontifax life science funds (Press release, Soligenix, DEC 16, 2020, View Source [SID1234572945]).
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"The access to less dilutive capital provided by this facility is designed to increase our financial flexibility as we continue to advance our rare disease pipeline, and build toward commercialization in the United States with SGX301 for the treatment of cutaneous T-cell lymphoma (CTCL) and SGX942 for the treatment of oral mucositis in head and neck cancer patients," stated Christopher J. Schaber, PhD, President and Chief Executive Officer of Soligenix.
"Pontifax is pleased to enter into this strategic financing partnership with Soligenix as it continues to advance its pipeline of clinically meaningful products for treating rare diseases," said Momi Karako, Partner at Pontifax. "Soligenix has deep expertise in development of products that treat diseases such as CTCL and oral mucositis in head and neck cancer patients, which is a perfect fit with our portfolio of transformative, cutting-edge life science companies."
Under the terms of the agreement with Pontifax, Soligenix will have access to up to $20 million in convertible debt financing in three tranches, which will mature over a four and a half year period and have an interest-only period for the first two years. Upon the closing of this transaction, the Company has accessed the first tranche of $10 million, and has the option to draw the second tranche of $5 million at any time over the next 12 months and the third tranche of $5 million upon filing of the SGX301 new drug application, subject to certain conditions.
Pontifax may elect to convert the outstanding loan drawn under the first two tranches into shares of Soligenix’s common stock at any time prior to repayment at a conversion price of $4.10 per share. Soligenix also has the ability to force the conversion of the loan into shares of its common stock at a conversion price of $4.92 per share, subject to certain conditions.