Mustang Bio Announces $20 Million Venture Debt Financing Agreement with Horizon Technology Finance

Mustang Bio (NASDAQ:MBIO) has announced it has entered into a US$20 million financing agreement with Horizon Technology Finance (NASDAQ:HRZN).

As quoted in the press release:

Fifteen million of the $20 million loan was funded upon closing. The remaining $5 million may be funded upon Mustang achieving certain predetermined milestones. Each advance of the loan will be repaid in 42 monthly payments consisting of 18 monthly payments of interest only, followed by 24 monthly payments of principal and accrued interest, and will be payable monthly in arrears. The interest-only period may be extended to 24 months contingent upon Mustang achieving certain milestones. In connection with the debt financing, Mustang issued Horizon warrants to purchase up to 288,184 of its common shares at an exercise price of $3.47 per share.

“This financing provides Mustang with additional working capital to continue to develop our gene and cell therapies in our cell processing facility in Worcester, Mass., with the goal of bringing potentially life-saving treatments to patients in need,” said Manuel Litchman, M.D., President and Chief Executive Office of Mustang. “We are pleased to partner with Horizon, a leading specialty finance company that has an extensive history of supporting innovative life science companies.”

Gerald A. Michaud, President of Horizon, stated, “We are delighted to provide this significant loan for Mustang Bio, an exciting company with promising treatments for cancer and rare genetic diseases. With Mustang Bio’s pipeline of cell and gene therapies, the company is poised for success as it works to commercialize its product pipeline.”

Click here to read the full press release.