MeiraGTx Announces Financing Agreement with Perceptive
– The credit facility is secured by MeiraGTx’s wholly owned manufacturing facilities in London, UK and Shannon, Ireland
– $75 million at closing strengthens balance sheet and extends track to Q4 2024
LONDON and NEW YORK, Aug. 03, 2022 (GLOBE NEWSWIRE) — MeiraGTx Holdings plc (Nasdaq: MGTX), a vertically integrated clinical-stage gene therapy company, today announced a term loan agreement with subsidiaries of Perceptive Advisors for up to $100 million, including $75 million at closing.
“Access to this minimally dilutive capital secured by our manufacturing facilities extends our cash trail to the fourth quarter of 2024 and highlights the value of the infrastructure we have built,” said Alexandria Forbes, Ph. D., President and CEO of MeiraGTx. . “In this market environment where the cost of equity remains high, our 100% owned manufacturing facilities allow us to fund the Company through the achievement of important milestones such as the advancement of our Lumeos Phase 3 clinical trial. of botaretigene sparoparvovec (AAV-RPGR) for the treatment of X-linked retinitis pigmentosa at the BLA depot, which is fully funded by our partner Janssen,” continued Dr. Forbes. “Importantly, the agreement also allows us to fully retain the significant value we create through our pipeline programs and all of our genetic medicine technology platforms.”
Under the term loan agreement, the Company received $75 million at closing and may request an additional $25 million during the first two years of the term under the same conditions and guarantees, subject to the lender’s approval. The credit facility is interest only for 4 years, with a maturity date of August 2, 2026, when principal will be due. The interest rate is 10% greater of the greater of 1% or a one-month CME term SOFR. In connection with the closing, the Company issued Perceptive warrants exercisable into 400,000 common shares of the Company with an exercise price per share of $15.00 (a 92% premium to the closing price of the share on the date of the transaction) and additional warrants exercisable into 300,000 common shares shares of the Company at an exercise price per share of $20.00 (a premium of 156% over the closing date of the action on the date of the transaction).
MeiraGTx intends to use the product for the continued development of its clinical-stage product candidates, preclinical programs and technology platforms, and for other general corporate purposes.
“MeiraGTx has an incredible wealth of assets, including what we consider to be industry-leading manufacturing and process development capabilities and infrastructure,” said Sam Chawla, Credit Funds Portfolio Manager. of Perceptive. “We are excited to continue our partnership with MeiraGTx as they advance their late-stage clinical programs and gene regulation technologies.”
About Meira GTx
MeiraGTx (Nasdaq: MGTX) is a vertically integrated, clinical-stage gene therapy company with six programs in clinical development and a broad portfolio of preclinical and research programs. MeiraGTx has core capabilities in viral vector design and optimization and gene therapy manufacturing, as well as a transformative gene regulatory platform technology that enables precise, dose-responsive control of expression gene by small oral molecules with a dynamic range that can exceed 5000 times. Led by an experienced management team, MeiraGTx has taken a portfolio approach in licensing, acquiring and developing technologies that provide depth to both product candidates and indications. MeiraGTx initially focuses on three distinct areas of unmet medical need: eye diseases, including hereditary retinal diseases as well as major degenerative eye diseases, neurodegenerative diseases and severe forms of xerostomia. Although initially focusing on the eye, central nervous system and salivary glands, MeiraGTx plans to expand its focus to develop additional gene therapy treatments for patients suffering from various serious diseases.
For more information, visit www.meiragtx.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release that do not relate to historical facts should be considered forward-looking statements, including, without limitation, statements regarding the development of our product candidate, the intended use of the proceeds of the borrowings under the term loan agreement, our ability to access the full $100 million potentially available under of the Term Loan Agreement and our ability to fund operations through the fourth quarter of 2024, including in light of the COVID-19 pandemic, as well as statements that include the words “expect ‘, ‘will’, ‘intend’, ‘plan’, ‘believe’, ‘project’, ‘anticipate’, ‘estimate’, ‘could’, ‘could’, ‘should’, ‘should’, “continue”, “antici per” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are not promises or guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from future results, performance or achievements. expressed or implied by the forward-looking statements. , including, but not limited to, our occurrence of material losses; any inability to achieve or maintain profitability, raise additional capital, identify and develop additional product candidates, successfully execute strategic priorities, commercialize product candidates, expand our manufacturing facilities and processes, to successfully enroll patients and complete clinical trials, accurately forecast growth assumptions, recognize the benefits of any orphan drug designation, retain key personnel or attract qualified employees, or incur anticipated levels of operation; the impact of the COVID-19 pandemic on the status, recruitment, timing and results of our clinical trials and on our business, results of operations and financial condition; the inability of early data to predict potential outcomes; failure to obtain FDA or other regulatory approval for product candidates on a timely basis or at all; the novel nature and impact of negative public opinion on gene therapy; non-compliance with current regulatory obligations; contamination or shortage of raw materials or other manufacturing problems; changes in health care laws; risks associated with our international operations; significant competition in the pharmaceutical and biotechnology industries; dependence on third parties; intellectual property risks; changes in tax policy or treatment; our ability to utilize our loss carryforwards and tax credits; litigation risks; and other important factors discussed under “Risk Factors” in our most recent quarterly report on Form 10-Q or annual report on Form 10-K or subsequent 8-K reports, as filed with the Securities and Exchange Commission. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. These forward-looking statements represent management’s estimates as of the date of this press release. Although we may choose to update these forward-looking statements at some time in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events change our views. Thus, it should not be assumed that our silence over time means that actual events will materialize, as expressed or implied in these forward-looking statements. These forward-looking statements should not be taken to represent our views as of any date subsequent to the date of this press release.
Jason Braco, Ph.D.