COMPASS Pathways plc (CMPS): debt financing — Compass Pathways secures up to $50M term loan from Hercules Capital, draws $30M initially

COMPASS Pathways plc

Loan facility up to $50M; initial $30M drawn on June 30, 2023; two additional tranches of $10M each available subject to milestones and lender approval.
Interest at greater of 9.75% or prime+1.5%; interest-only until July 2025 (or extended to July 2026 if milestones met); matures July 2027.
Proceeds to fund COMP360 phase 3 trial in treatment-resistant depression; initial data expected summer 2024.
Warrant issued to Hercules for 94,222 shares at $7.96 per share (10-year term), representing 2.5% of principal.
Loan secured by assets but excludes IP; includes financial covenant to maintain qualified cash after Jan 1, 2024; prepayment penalties apply.

item 1.01 item 2.03 item 3.02 item 7.01 item 9.01

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

COMPASS Pathways plc incurred term loan of $30.0 million with Hercules Capital, Inc. at greater of (i) 9.75% or (ii) 1.50% plus the Wall Street Journal prime rate maturing July 1, 2027.

Instrument: term loan
Principal: $30.0 million
Counterparty: Hercules Capital, Inc.
Rate: greater of (i) 9.75% or (ii) 1.50% plus the Wall Street Journal prime rate
Maturity: July 1, 2027
Event: incurrence

Exact text from the filing

On June 30, 2023 (the “Closing Date”), COMPASS Pathways plc (the “Company”) and certain of its subsidiaries (together with the Company, the “Borrowers”) entered into a loan and security agreement (the “Loan Agreement”) with Hercules Capital, Inc. (“Hercules”), which provided for aggregate maximum borrowings of up to $50.0 million, consisting of (i) a term loan of $30.0 million, which was funded on June 30, 2023

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

COMPASS Pathways plc entered into Loan and Security Agreement with Hercules Capital, Inc. valued at up to $50,000,000 (effective 2023-06-30).

Action: entry
Agreement: credit facility
Counterparty: Hercules Capital, Inc.
Value: up to $50,000,000
Effective: 2023-06-30

Exact text from the filing

On June 30, 2023 (the “Closing Date”), COMPASS Pathways plc (the “Company”) and certain of its subsidiaries (together with the Company, the “Borrowers”) entered into a loan and security agreement (the “Loan Agreement”) with Hercules Capital, Inc. (“Hercules”), which provided for aggregate maximum borrowings of up to $50.0 million

View on SEC.gov

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COMPASS Pathways plc filing history →

Source: SEC EDGAR

accession 0001816590-23-000093

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