4D pharma closes $30 million credit facility via Oxford Finance

By Marisa Wong

Los Angeles, July 29 – 4D pharma plc closed a $30 million senior secured credit facility with Oxford Finance LLC, according to a press release.

The $30 million of cash is available in three tranches: an initial tranche of $12.5 million at closing, with the remaining $7.5 million and $10 million tranches dependent on the achievement of certain milestones.

The facility will require 4D pharma to make monthly interest-only payments through Sept. 1, 2023 or, subject to the achievement of development milestones, Sept. 1, 2024.

“The credit facility from Oxford Finance provides access to additional capital strengthening our financial position and increasing our financial flexibility as we continue to advance our programs to bring first-in-class live biotherapeutics to market,” chief executive officer Duncan Peyton said in the release.

“The initial $12.5 million tranche of this financing extends our cash runway into Q4 2022, with multiple clinical catalysts throughout 2021 and 2022.”

4D pharma has also granted Oxford Finance a five-year warrant to subscribe for 212,568 new ordinary shares at $1.18 per share. Further warrants will be granted to Oxford Finance as further tranches are drawn down.

4D pharma is a pharmaceutical company leading the development of live biotherapeutic products (LBPs), a novel class of drug derived from the microbiome. The company is based in Leeds, United Kingdom.

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