Panacos Pharmaceuticals jumps after closing loan agreement
Shares of Panacos Pharmaceuticals, Inc. (Nasdaq: PANC) jumped 7.29%, or $0.25, to $3.68 in after-hours trading Thursday after the biotechnology company announced that it closed a $20 million term loan agreement with Hercules Technology Growth Capital, Inc. (Nasdaq: HTGC).
Under the terms of the loan agreement, Hercules has advanced $10 million to Panacos immediately upon closing. Panacos said it plans to draw the remaining $10 million before Sep. 30, 2007. Additionally, only interest payments will be required for the first 12 months.
“This financing extends Panacos’ cash runway in a relatively non-dilutive form, and provides us with additional strategic flexibility as we continue to advance our pipeline of antiviral programs,” said Panacos’ Chief Executive Officer Alan W. Dunton, M.D. “We are pleased to enter this relationship with Hercules, and will benefit from their experience and expertise in the biopharmaceutical industry.”
As part of the transaction, Panacos issued Hercules a five-year warrant to purchase 646,900 shares of Panacos’ common stock at an exercise price of $3.71 per share.
About the Author
Reporter Jennifer Schonberger is based in SmallCapInvestor.com's Washington, D.C. bureau.
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