WAYNE, Pa., March 31, 2020 (GLOBE NEWSWIRE) – Aclaris Therapeutics, Inc. (NASDAQ: ACRS), a physician-led biopharmaceutical company, today announced that it has entered into a loan and guarantee agreement with Silicon Valley Bank (“SVB”) under which Aclaris borrowed $ 11.0 million.
“This funding allows us to strengthen our financial position by extending our cash flow path and continue to execute our refocused business strategy as planned,” said Dr. Neal Walker, President and CEO of Aclaris. Aclaris estimates that the proceeds from the loan, combined with its existing cash, cash equivalents and marketable securities, will be sufficient to fund its operations until the first quarter of 2022.
The term loan only requires interest payments beginning April 1, 2020 and continuing through March 1, 2022, followed by monthly principal payments, plus monthly accrued interest payments, beginning April 1, 2022 and ending on April 1, 2022. continuing until March 1, 2024. The loan is secured by substantially all of Aclaris’ assets, other than intellectual property. In connection with the term loan, Aclaris issued a warrant to SVB to purchase up to 460,251 common shares of Aclaris at an initial exercise price of $ 0.956 per share. The mandate became immediately exercisable in full as soon as the loan was financed. Other important terms related to the term loan and mandate can be found in Aclaris’ current report on Form 8-K, which will be filed with the United States Securities and Exchange Commission.
About Aclaris Therapeutics, Inc.
Aclaris Therapeutics, Inc. is a physician-led biopharmaceutical company committed to meeting the needs of patients with immune-inflammatory diseases who do not have satisfactory treatment options. The company has a portfolio of multi-step drug candidates powered by a robust R&D engine exploring the regulation of protein kinases. For more information, please visit www.aclaristx.com and follow Aclaris on LinkedIn or Twitter @aclaristx.
Caution regarding forward-looking statements
All statements in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believe “,” Expect, “” intend “,” can “,” plan “,” the potential “,” the will “and similar expressions, and are based on the current beliefs and expectations of Aclaris . These forward-looking statements include Aclaris’ continued execution of its refocused business strategy and its belief that its existing cash, cash equivalents and marketable securities, as well as loan proceeds, will be sufficient to fund its operations until first quarter 2022. These statements involve risks and uncertainties which could cause actual results to differ materially from those reflected in these statements. Risks and uncertainties that may cause actual results to differ materially include the uncertainties inherent in the conduct of clinical trials, Aclaris’ dependence on third parties over which it does not always have full control, Aclaris ‘ability to enter into strategic partnerships on commercially reasonable terms and other risks and uncertainties described in the Risk Factors section of Aclaris’ annual report on Form 10-K for the year ended December 31, 2019 and d ” other documents filed by Aclaris with the United States Securities and Exchange Commission from time to time. These documents are available in the “SEC Filings” section of the Investors page of the Aclaris website at http://www.aclaristx.com. All forward-looking statements speak only as of the date of this press release and are based on information available to Aclaris as of the date of this press release, and Aclaris assumes no obligation and does not intend to make any up-to-date forward-looking statements. whether as a result of new information, future events or otherwise.
Michael Tung, MD
Senior Vice President
Corporate Strategy / Investor Relations