Cerecor Enters Into $35 Million Debt Financing Agreement With Horizon Technology Finance

  • An initial $ 20 million tranche drawn upon loan completion

  • Funding the ongoing clinical development of important investigational drugs

  • The funding offers flexibility and extends the runway through multiple clinical catalysts expected in 2021

ROCKVILLE, Md. And CHESTERBROOK, Pa., June 7, 2021 (GLOBE NEWSWIRE) – Cerecor Inc. (NASDAQ: CERC), a biopharmaceutical company focused on leading the development and commercialization of treatments for rare and rare diseases , announced today that it has entered into a debt financing agreement, led by Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”), to provide term loans of up to $ 35.0 million.

“We are excited to partner with Horizon, a leading specialty finance firm with a long history of supporting innovative life science companies,” said Michael Cola, Cerecor’s chief executive officer. “In the course of 2021, we expect a number of important data readings for our product candidates for immunology, oncology and rare genetic diseases. This transaction immediately strengthens and expands our financial resources to advance our clinical pipeline towards these important development milestones. ”

Gerald A. Michaud, President of Horizon, said, “We are pleased to provide this funding to Cerecor and have confidence in the company’s business strategy. We look forward to seeing the company meet its critical development milestones for its in-pipeline therapies for rare diseases and rare diseases. This investment in Cerecor is yet another example of our ability to finance life science companies through multiple stages of development and value turning points. “

$ 20 million of the $ 35 million loan was funded upon completion. The remaining $ 15 million can be funded once Cerecor reaches certain predetermined milestones. Each loan advance is repaid in 42 monthly installments, consisting of just 18 monthly interest payments, followed by 24 monthly principal payments and accrued interest, and is payable monthly in arrears. The interest period can be extended to 24 months if Cerecor reaches certain milestones. In connection with the financing, Cerecor has issued Horizon warrants to purchase up to 403,844 of its common shares at an exercise price of $ 2.60 per share. The proceeds will be used to support ongoing clinical development of key investigational drugs within the pipeline and for general working capital purposes.

The story goes on

Jefferies acted as the exclusive arranger and financial advisor to Cerecor on this transaction.

Additional information regarding the debt financing arrangement with Horizon will be included in an updated report on Cerecor’s Form 8-K with the Securities and Exchange Commission.

About Cerecor

Cerecor is a biopharmaceutical company focused on becoming a leader in the development and commercialization of treatments for rare and rare diseases. The company is advancing its pipeline of innovative clinical-stage therapies that address unmet patient needs in rare and rare diseases. The company’s rare disease pipeline includes CERC-801, CERC-802 and CERC-803 in development for congenital glycosylation disorders and CERC-006, an oral mTORc1 / c2 inhibitor in development for the treatment of complex lymphoid malformations . The company is also developing two monoclonal antibodies, CERC-002 and CERC-007. CERC-002 targets the cytokine LIGHT (TNFSF14) and is in clinical development for the treatment of severe Crohn’s disease in children and adolescents and acute respiratory distress syndrome COVID-19. CERC-007 targets the cytokine IL-18 and is in clinical development for the treatment of Still disease (adult Still disease (AOSD) and systemic juvenile idiopathic arthritis (sJIA)) and multiple myeloma (MM). CERC-006, 801, 802 and 803 have all received the Orphan Drug Designation and the Rare Pediatric Disease Designation, which means that all four are eligible for a Priority Review Voucher following FDA approval.

More information about Cerecor can be found at www.cerecor.com.

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance firm that provides capital in the form of secured loans to venture capital firms in the technology, life sciences, health information and services, and sustainability sectors. Horizon’s investment objective is to maximize the return on its investment portfolio by generating ongoing income from its debt investments and capital appreciation from the warrants it receives on such debt investments. Horizon is headquartered in Farmington, Connecticut, with regional offices in Pleasanton, California, and investment professionals in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.

Forward-Looking Statements

This press release may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to significant risks and uncertainties that could change due to various factors (many of which are beyond the control of Cerecor), which could cause actual results to differ from the forward-looking statements. Such statements may include, without limitation, statements relating to Cerecor’s plans, goals, projections, expectations, and intentions, as well as other statements identified by words such as “projects,” “could,” “could,” “will,” “could,” “would “,” Should “,” continue “,” seek “,” aim “,” predict “,” believe “,” expect “,” anticipate “,” estimate “,” intend “,” plan “,” potential “” or similar expressions (including their negative use) or through discussions on future matters such as: the development of product candidates or products; Time and success of study results and official review; potential properties and advantages of product candidates; and other statements that are not historical. These statements are based on the current beliefs and expectations of Cerecor management, but are subject to significant risks and uncertainties including: drug development costs, timing, and other risks, including investigator reliance and patient enrollment in clinical trials brought about by the COVID-19 -Pandemic; regulatory risks; Cerecor’s liquidity position and the potential need for additional capital; general economic and market risks and uncertainties, including those caused by the COVID-19 pandemic; and the other risks identified in Cerecor’s filings with the Securities and Exchange Commission. Actual results could differ from the forward-looking statements. Except as required by law, Cerecor expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect changes in Cerecor’s expectations regarding them or changes in events, conditions or circumstances on which any statement is based .

For media and investor inquiries

Chris Brinzey
Westwicke, an ICR company
[email protected]


L. Greenway injured
Investor Relations
Cerecor Inc.
[email protected]

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