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

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

Item 1.01

Entry into a Material Definitive Agreement.

On December 12, 2016, Paratek Pharmaceuticals, Inc. (the Company)
and Paratek Pharma, LLC entered into an amendment (the Amendment)
to the Loan and Security Agreement dated September 30, 2015 (the
Loan Agreement) with Hercules Technology II, L.P., Hercules
Technology III, L.P., certain other lenders (together, the
Lenders) and Hercules Capital, Inc. (as agent). The Amendment
extended the date on which the Company must begin making
amortization payments under the Loan Agreement from April 1, 2018
to January 1, 2019 (the Amortization Date). Upon commencement of
the Amortization Date, the Company will make amortization
payments based upon an amortization schedule equal to thirty
consecutive months, with the balance of outstanding loans due on
the original maturity date of the Loan Agreement.The amendment
also increased the amount that the Company may borrow by $10.0
million, from up to $40.0 million to up to $50.0 million in
multiple tranches.The additional $10.0 million tranche (the
Additional Tranche) is available at the Companys option through
September 15, 2017 but conditioned upon the Company completing
either a second Phase 3 clinical evaluation of omadacycline in
patients with acute bacterial skin structure infections or in
patients with community acquired bacterial pneumonia that is
supportive of the Company making a new drug application filing
with the Food and Drug Administration. If drawn, the Additional
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, concurrently with
the Closing of the Amendment, the Company borrowed an additional
$20.0 million under the Loan Agreement.

In connection with the Amendment, the Company issued a warrant to
each of Hercules Technology II, L.P. and Hercules Technology III,
L.P. which together are exercisable for an aggregate of 37,258
shares of the Companys common stock and each carry an exercise
price of $13.46 per share (the Additional Warrants).
Additionally, upon the Additional Tranche funding date, the
Company will issue an additional warrant to each of Hercules
Technology II, L.P. and Hercules Technology III, L.P. which
together will be exercisable for an aggregate number of shares
equal to 125,000 divided by the arithmetic mean of the Companys
daily closing price per share for the ten trading days preceding
the Additional Tranche funding date and each carry an exercise
price equal to the arithmetic mean of the Companys daily closing
price per share for the ten trading days preceding the Additional
Tranche funding date (the Conditional Warrants and together with
the Additional Warrants, the Warrants). Each Warrant may be
exercised on a cashless basis. The Warrants are 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 Warrants. The number of shares for which the Warrants are
exercisable and the associated exercise price are subject to
certain proportional adjustments as set forth in the Warrants.

The descriptions of the Amendment and the Warrants contained
herein do not purport to be complete and are qualified in their
entirety by reference to the complete text of the Amendment and
the Form of Warrant filed hereto as Exhibits 10.1 and 4.1,
respectively.

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

The information in Item 1.01 above relating to the issuance of
the Warrants 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 Warrants and no
finders fees were paid to any party in connection therewith. The
issuance of the Warrants was made in reliance on the exemption
from registration contained in Section 4(a)(2) of the Securities
Act.

(d) Exhibits.

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. PARATEK PHARMACEUTICALS, INC. (NASDAQ:PRTK) Recent Trading Information
PARATEK PHARMACEUTICALS, INC. (NASDAQ:PRTK) closed its last trading session up +0.15 at 13.80 with 301,725 shares trading hands.