California Institute for Regenerative Medicine is the single investor
By Devika Patel
Knoxville, Tenn., Aug. 1 - Geron Corp. negotiated a $24.85 million loan agreement with the California Institute for Regenerative Medicine on Aug. 1, according to an 8-K filed Monday with the Securities and Exchange Commission.
The loan carries a coupon equal to the one-year Libor plus 200 basis points and is due in five years.
The investor also received 50% warrant coverage. The warrants are each exercisable for ten years; the strike price will be equal to the average closing price preceding the warrant issue date.
Proceeds from the loan may only be used to support Geron's human embryonic stem-cell derived oligodendrocyte progenitor therapy for the treatment of spinal cord injury.
Geron, based in Menlo Park, Calif., develops therapeutic treatments for cancer, degenerative diseases and chronic diseases.
| Issuer: | Geron Corp.
|
| Issue: | Loan
|
| Amount: | $24,846,856
|
| Maturity: | Five years
|
| Coupon: | Libor plus 200 bps
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Ten years
|
| Investor: | California Institute for Regenerative Medicine
|
| Settlement date: | Aug. 1
|
| Stock symbol: | Nasdaq: GERN
|
| Stock price: | $3.74 at close Aug. 1
|
| Market capitalization: | $481.78 million
|
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