CTI BioPharma Amends Existing Loan Agreement With Hercules Technology Growth

(RTTNews) - CTI BioPharma Corp. (CTIC) said it has amended its existing loan agreement with Hercules Technology Growth Capital, Inc.. Following the amendment, Hercules agreed to provide term loans in an aggregate principal amount of up to $25 million under the facility, inclusive of amounts outstanding immediately prior to closing of the amendment.

On June 9, about $6.2 million was funded, thereby resulting in a current outstanding principal balance under the facility of $20 million.

The remaining $5 million is available for borrowing at CTI BioPharma's option through June 30, 2016, subject to no event of default under the facility and the satisfaction of receipt by Hercules on or prior to December 31, 2015 of satisfactory evidence that CTI BioPharma has achieved full patient enrollment for the PERSIST-2 Phase III clinical trial for pacritinib and receipt by Hercules on or prior to June 30, 2016 of satisfactory evidence that CTI BioPharma has achieved positive phase III data in connection with such clinical trial.

In connection with the amendment, CTI BioPharma issued Hercules a warrant exercisable in whole or in part for up to 292,398 shares of common stock of CTI BioPharma at any time prior to June 9, 2020 at an initial exercise price per share of $1.71.

The company intends to use any future proceeds from any future cash exercise of the warrant for general corporate purposes.