ABEONA THERAPEUTICS INC. (ABEO): debt financing — Abeona secures $50M credit facility; $20M funded at close for pz-cel launch prep

ABEONA THERAPEUTICS INC.

$50M term loan from Avenue Venture Opportunities; $20M drawn at Jan 8 close, $10M committed after pz-cel approval, $20M discretionary.
Loans mature July 1, 2027; interest at prime+5% (floor 13.5%); final payment fee 5%; minimum $5M cash covenant.
Warrants issued to lenders for up to ~$2.4M of ABEO stock; exercise price ≤$4.75; expire Jan 2029; cashless exercise allowed.
Proceeds for pz-cel launch and general corporate; PDUFA for pz-cel BLA set for May 25, 2024 (Priority Review).

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ABEONA THERAPEUTICS INC. incurred term loan of $20 million with Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P. at greater of (i) the prime rate, as published by the Wall Street Journal from time maturing July 1, 2027.

Instrument: term loan
Principal: $20 million
Counterparty: Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P.
Rate: greater of (i) the prime rate, as published by the Wall Street Journal from time
Maturity: July 1, 2027
Event: incurrence

Exact text from the filing

and the Lenders. The Loan Agreement provides for senior secured term loans (the “ Loans ”) in an aggregate principal amount up to $50 million, with (i) a committed tranche of $20 million advanced on the Closing Date (“ Tranche 1 ”), (ii) a committed tranche of up to $10 million which may be advanced upon the request of the Company between June 30, 2024 and

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

ABEONA THERAPEUTICS INC. entered into Supplement to Loan and Security Agreement with Avenue Venture Opportunities Fund, L.P. valued at Conversion Right to convert up to $3 million of principal into common stock; Participation Right to (effective 2024-01-08).

Action: entry
Agreement: credit facility
Counterparty: Avenue Venture Opportunities Fund, L.P.
Value: Conversion Right to convert up to $3 million of principal into common stock; Participation Right to
Effective: 2024-01-08

Exact text from the filing

Also on January 8, 2024, the Companies entered into a Supplement to the Agreement (collectively with the Agreement, the “ Loan Agreement ”) with the Agent and the Lenders.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.99

ABEONA THERAPEUTICS INC. entered into Loan and Security Agreement with Avenue Venture Opportunities Fund, L.P. valued at $50,000,000 (effective 2024-01-08).

Action: entry
Agreement: credit facility
Counterparty: Avenue Venture Opportunities Fund, L.P.
Value: $50,000,000
Effective: 2024-01-08

Exact text from the filing

On January 8, 2024 (the “ Closing Date ”), Abeona Therapeutics Inc., a Delaware corporation (“ Abeona ”) and its subsidiaries MacroChem Corporation, a Delaware corporation (“ MacroChem ”) and Abeona Therapeutics LLC, an Ohio corporation (“ Abeona OH ” and, together with Abeona and MacroChem, each individually, a “ Company ” and collectively, the “ Companies ”) entered into a Loan and Security Agreement (the “ Agreement ”) with Avenue Venture Opportunities Fund, L.P., a Delaware limited partnership, as administrative agent and collateral agent (“ Avenue ” and the “ Agent ”) and Avenue Venture Opportunities Fund II, L.P. , a Delaware limited partnership (“ Avenue 2 ” and, together with Avenue, the “ Lenders ”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

ABEONA THERAPEUTICS INC. entered into Warrants with Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P. valued at Warrants to purchase up to $480,000 and $1,920,000 worth of shares respectively (effective 2024-01-08).

Action: entry
Agreement: credit facility
Counterparty: Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P.
Value: Warrants to purchase up to $480,000 and $1,920,000 worth of shares respectively
Effective: 2024-01-08

Exact text from the filing

On the Closing Date and pursuant to the funding of Tranche 1 of the Loan Agreement, the Company issued to each of Avenue and Avenue 2 (collectively, the “ Warrantholders ”) warrants to purchase up to $480,000 and $1,920,000 worth of shares, respectively, of Company common stock (each, a “ Warrant ” and collectively, the “ Warrants ”).

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283 debt financings filed in the last 30 days. Browse all debt financings →

ABEONA THERAPEUTICS INC. filing history →

Source: SEC EDGAR

accession 0001493152-24-001660

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