Reata Pharmaceuticals, Inc. (NASDAQ:RETA) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.Entry into a Material Definitive Agreement.
On November 3, 2017, Reata Pharmaceuticals, Inc. (the “Borrower”) entered into a First Amendment to Loan and Security Agreement (the “Amendment”) with Oxford Finance LLC, as the collateral agent and a lender (“Oxford”), and Silicon Valley Bank, as a lender (together with Oxford, the “Lenders”), which amended the Loan and Security Agreement (the “Loan Agreement”) entered into among the Borrower and the Lenders on March 31, 2017. Under the terms of the Loan Agreement, the Borrower borrowed $20 million (the “Term A Loan”) from the lenders on March 31, 2017, and had the right to borrow an additional $15 million until November 5, 2017 (the “Term B Loan” and, collectively with the Term A Loan, the “Term Loans”).
to the Amendment, the Loan Agreement was amended to increase the amount of the Term B Loan to $20 million prior to the Term B Loan Increase Milestone (hereinafter defined) and $25 million following the Term B Loan Increase Milestone. The “Term B Loan Increase Milestone” means the earlier of the date that the Borrower either (i) is allowed to proceed under an investigational new drug application or receives approval of a clinical trial authorization or a clinical trial notification for RTA 1701 or (ii) the Borrower doses the first patient in a Phase 2 trial of RTA 901.
The Borrower may borrow the Term B Loan during a period that ends on (and includes) the earlier of (i) ninety (90) days after the Term B Loan Increase Milestone and (ii) June 29, 2018.
If the Borrower draws the Term B Loan, the Amendment provides that the Term Loans will begin amortizing on November 1, 2019, rather than on May 1, 2019 as set forth in the Loan Agreement prior to giving effect to the Amendment.
The Borrower paid an amendment fee of $250,000 upon execution of the Amendment. If the Borrower does not draw the Term B Loan, the Borrower will pay the Lenders an unused line fee of $1 million.
The Company’s obligations under the Loan Agreement, as amended, are secured by a first priority security interest in substantially all of its current and future assets, other than its owned intellectual property but including stock of its subsidiaries. The Company has also agreed not to encumber its intellectual property assets, except as permitted by the Loan Agreement, as amended.
The foregoing is only a summary of the material terms of the Amendment, does not purport to be complete, and is qualified in its entirety by reference to the full text of the Amendment, which is attached as Exhibit 10.1 hereto and incorporated herein in its entirety.
Item 2.03.Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 is incorporated into this Item 2.03 by reference.
Item 9.01.Financial Statements and Exhibits.
(d)Exhibits
REATA PHARMACEUTICALS INC ExhibitEX-10.1 2 reta-ex101_17.htm EX-10.1 AMENDED AGREEMENT reta-ex101_17.htm Exhibit 10.1 FIRST AMENDMENT TOLOAN AND SECURITY AGREEMENT THIS FIRST AMENDMENT TO Loan and Security Agreement (this “Amendment”) is entered into as of November 3,…To view the full exhibit click here
About Reata Pharmaceuticals, Inc. (NASDAQ:RETA)
Reata Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, developing and commercializing product candidates that modulate the activity of regulatory proteins involved in the biology of mitochondrial function, oxidative stress, and inflammation to address the unmet medical needs of patients with a range of serious or life-threatening diseases. The Company’s lead product candidates include bardoxolone methyl, which is being studied in Phase III trial for the treatment of pulmonary arterial hypertension (PAH), associated with connective tissue disease (CTD-PAH), as well as a Phase II trial for the treatment of pulmonary hypertension due to interstitial lung disease (PH-ILD), and PAH, each of which are subsets of pulmonary hypertension (PH), Omaveloxolone, which is in Phase II clinical development for the treatment of multiple diseases, including Friedreich’s ataxia, mitochondrial myopathies and metastatic melanoma.
