PARATEK PHARMACEUTICALS, INC. (NASDAQ:PRTK) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01.

On June 27, 2017, Paratek Pharmaceuticals, Inc. (the Company) and
Paratek Pharma, LLC entered into Amendment No. 3 (the Amendment)
to the Loan and Security Agreement dated September 30, 2015 (as
amended, the Loan Agreement), with Hercules Technology II, L.P.,
Hercules Technology III, L.P., and Hercules Capital, Inc., as
agent (the Agent and, together with Hercules Technology II, L.P.,
Hercules Technology III, L.P., the Lenders).

The amendment increased the amount that the Company may borrow by
$10.0 million, from up to $50.0 million to up to $60.0 million,
in multiple tranches.The additional $10.0 million tranche (the
Fourth Tranche) is available at the Companys option through
December 15, 2017. If drawn, the Fourth Tranche shall bear
interest and have the same maturity as all other loans
outstanding under the Loan Agreement.The Company borrowed the
first tranche of $20.0 million upon the closing of the Loan
Agreement on September 30, 2015, and the second tranche of $20.0
million on December 12, 2016 (collectively, the Initial
Tranches).Concurrently with the closing of the Amendment, the
Company borrowed a third tranche of $10.0 million (the Third
Tranche).

The Amendment also extends the date on which the Company is
required to begin making monthly principal installments under the
Loan Agreement from January 1, 2019, to January 1, 2020, subject
to the Companys receipt of marketing approval for the Companys
lead product candidate, omadacycline (the Interest Only Period
Extension Event).Beginning on January 1, 2019, or, if the Company
achieves the Interest Only Period Extension Event, January 1,
2020, the Company will make payments in equal monthly
installments of principal and interest, with the balance of
outstanding loans due on the original maturity date of the Loan
Agreement.

The Amendment reduces the final payment fee due with respect to
the Third Tranche from to 4.5% to 2.25% if the obligations under
the Loan Agreement are repaid in full on or prior to September
30, 2017, following the Agents election not to consent to a
proposed third-party, non-equity financing arrangement (excluding
any stock issuance).The final payment fee with respect to the
Fourth Tranche, if drawn, is 2.25%.

If the Company prepays the loan prior to maturity, it will pay
the Lenders a prepayment charge, based on a percentage of the
then outstanding principal balance, equal to (i) 1% with respect
to the Third Tranche and the Fourth Tranche (if drawn) or (ii) 2%
with respect to the Initial Tranches if the prepayment occurs
prior to April 1, 2019, or equal to 0% if the prepayment occurs
on or after April 1, 2019.

In connection with the borrowing of the Third Tranche, on June
27, 2017, the Company issued a warrant to Hercules Capital, Inc.
that is exercisable for an aggregate of 5,374 shares of Common
Stock at an exercise price of $23.26 per share (the Warrant). The
Warrant may be exercised on a cashless basis. The Warrant is
exercisable for a term beginning on the date of issuance and
ending on the earlier to occur of five years from the date of
issuance or the consummation of certain acquisitions of the
Company as set forth in the Warrant. The number of shares for
which the Warrant is exercisable and the associated exercise
price are subject to certain proportional adjustments as set
forth in the Warrant.

The descriptions of the Loan Agreement, the Amendment and the
Warrant contained herein do not purport to be complete and are
qualified in their entirety by reference to the complete text of
the Loan Agreement, the Amendment and the Form of Warrant. The
Loan Agreement was filed as an exhibit to the Companys Form
10-Q/A filed on December 3, 2015, and the form of Warrant and
Amendment are attached hereto as Exhibits 4.1 and 10.1,
respectively.

The information in Item 1.01 above relating to the Amendment is
incorporated by reference into this Item 2.03.

The information in Item 1.01 above relating to the issuance of
the Warrant is incorporated by reference into this Item 3.02.

Neither the Company nor the Lenders engaged any investment
advisors with respect to the issuance of the Warrant and no
finders fees were paid to any party in connection therewith. The
issuance of the Warrant was made in reliance on the exemption
from registration contained in Section 4(a)(2) of the Securities
Act, as they were sold to an accredited investor with which the
Company had a prior relationship.

Based upon the Companys current operating plan, the Company
anticipates that its existing cash, cash equivalents and
marketable securities, the Fourth Tranche available under the
Loan Agreement and anticipated regulatory and commercial
milestone payments from the Companys Collaborative Research and
License Agreement with Allergan, plc and License and
Collaboration Agreement with Zai Lab (Shanghai) Co., Ltd., will
enable the Company to fund its operating expenses and capital
expenditure requirements through the second quarter of 2019.

Paratek Pharmaceuticals, Inc. Exhibit
EX-4.1 2 prtk-ex41_6.htm EX-4.1 prtk-ex41_6.htm Exhibit 4.1 THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,…
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About PARATEK PHARMACEUTICALS, INC. (NASDAQ:PRTK)

Paratek Pharmaceuticals, Inc. (Paratek), formerly Transcept Pharmaceuticals, Inc. is a pharmaceutical company focused on the development and commercialization of antibacterial therapeutics based upon tetracycline chemistry. Paratek’s antibacterial product candidates are omadacycline and sarecycline. Omadacycline is a broad-spectrum antibiotic for use as an empiric monotherapy for community-acquired bacterial infections, such as acute bacterial skin and skin structure infections (ABSSSI), community-acquired bacterial pneumonia (CABP) and urinary tract infections (UTI). The Company’s sarecycline is a Phase III antibacterial product candidate and was previously known as WC3035. Sarecycline is designed for use in the treatment of acne and rosacea. The Company’s other product candidates are tetracycline-derived, molecular entities and are designed to utilize the recognized immune-modulation, anti-inflammatory and other beneficial properties of the tetracycline class.