Evelo Biosciences uses private equity raise to repay debt

Chicago, July 12 – Evelo Biosciences, Inc. said that it used proceeds from a private equity sale with gross proceeds of $25.5 million to pay down approximately $5 million of debt, according to a press release.

Further, the company restructured its existing debt with Horizon Technology Finance Corp.

The principal balance of the loan was reduced by $10 million with the $5 million paydown and with another $5 million that was converted into equity, at the same price per share as the private placement.

Evelo has agreed to pay down up to an additional $10 million of the loan and Horizon has agreed to convert up to an additional $10 million of the loan to equity, in each case concurrent with future equity financings of the company.

Evelo Biosciences is a clinical-stage biotechnology company developing oral biologics that act on cells in the small intestine with systemic therapeutic effects. It is based in Cambridge, Mass.

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