According to the deal, Savara can draw $7.5 million from the $15 million debt facility immediately. The company said it plans to use its newly-acquired capital to repay the pre-merger debt of $3.7 million it owes to Hercules Technology Growth Capital. The rest of the funds are slated to support ongoing development programs and general corporate activities.
Savara can choose to draw an additional $7.5 million from its debt facility through June 30, 2017, contingent upon certain corporate milestones.
SVRA shares were trading at $7.55 apiece in mid-morning activity today, down -13.81%.
The combined company plans to focus on advancing a pipeline of inhaled therapies, including AeroVanc to treat chronic methicillin-resistant Staphylococcus aureus pulmonary infection in cystic fibrosis, Molgradex to treat pulmonary alveolar proteinosis and AIR1001 to treat heart failure with preserved ejection fraction. All 3 treatments are in advanced clinical development.
The companies closed their merger deal at the end of April.