Deal also includes warrant for 285,016 shares, exercisable at $6.14
By Devika Patel
Knoxville, Tenn., April 25 - Alimera Sciences Inc. said it arranged a $35 million term loan with Hercules Technology Growth Capital, Inc. It has already raised $10 million and the remaining $25 million will settle if the U.S. Food and Drug Administration approves Iluvien by Oct. 31.
The 10.9% loan matures on May 1, 2018.
Hercules also received a warrant for 285,016 shares, which is exercisable at $6.14, which is identical to the April 24 closing share price.
Proceeds will be used to pay off an existing term loan with Silicon Valley Bank and provide additional working capital for general corporate purposes.
Atlanta-based Alimera Sciences develops and markets ophthalmology pharmaceuticals.
Issuer: | Alimera Sciences Inc.
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Issue: | Term loan
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Amount: | $35 million
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Maturity: | May 1, 2018
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Coupon: | 10.9%
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Warrants: | For 285,016 shares
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Warrant strike price: | $6.14
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Investor: | Hercules Technology Growth Capital, Inc.
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Settlement date: | April 25 (for $10 million)
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Stock symbol: | Nasdaq: ALIM
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Stock price: | $6.14 at close April 24
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Market capitalization: | $227.84 million
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