Oxford Finance, Horizon Technology invest in drug development company
By Devika Patel
Knoxville, Tenn., June 28 - Celsion Corp. negotiated a $10 million term loan with Oxford Finance LLC and Horizon Technology Finance Corp. on June 27, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The investors will each contribute $5 million. The initial $5 million tranche settled at pricing.
The initial $5 million loan is due Oct. 15, 2015, with the remaining $5 million due on Jan. 1, 2016. The first tranche carries a 11.75% coupon, while the second tranche will carry a coupon equal to the greater of 11.75% and the sum of the Libor rate three days prior to settlement, with a 0.47% floor, plus 11.28%.
The investors also received warrants for 51,370 shares, which are exercisable at $2.92 for seven years. The strike price reflects a 2.82% premium to the June 26 closing share price of $2.84.
Proceeds will be used for working capital and general corporate purposes.
Celsion is based in Lawrenceville, N.J., and develops drugs for difficult-to-treat forms of cancer.
| Issuer: | Celsion Corp.
|
| Issue: | Term loan
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| Amount: | $10 million
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| Maturity: | Oct. 15, 2015 (for $5 million), Jan. 1, 2016 (for $5 million)
|
| Coupon: | 11.75% (for $5 million), the greater of 11.75% and the sum of the Libor rate three days prior to settlement, with a 0.47% floor, plus 11.28% (for $5 million)
|
| Warrants: | For 51,370 shares
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| Warrant expiration: | Seven years
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| Warrant strike price: | $2.92
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| Investors: | Oxford Finance LLC (for $5 million) and Horizon Technology Finance Corp. (for $5 million)
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| Settlement date: | June 27 (for $5 million)
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| Stock symbol: | Nasdaq: CLSN
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| Stock price: | $2.84 at close June 26
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| Market capitalization: | $95.62 million
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