Proteostasis Therapeutics, Inc. (NASDAQ:PTI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On September19, 2017, Proteostasis Therapeutics, Inc. (the “Company”) entered into a Lease (the “Lease”) with Ice Box, LLC (the “Landlord”) to lease approximately 29,836 square feet of office and laboratory space located at 80 Guest Street, Brighton, Massachusetts (the “Premises”) for the Company’s new principal executive offices. The Company currently leases office space located at 200 Technology Square, Cambridge, Massachusetts, which expires to its terms on May31, 2018.
The Lease commences (the “Commencement Date”) on the earlier of (i)the first date on which tenant commenced occupancy for the conduct of business in the Premises, or (ii)April 15, 2018, subject to extension for certain delays.The Lease will extend from the Commencement Date and then for ten years starting with the first day of the month following the month in which the Commencement Date falls (the “Lease Term”), unless terminated earlier.The Company is entitled to one seven-year option to extend.
The Lease provides for annual base rent of approximately $1.7 million in the first year of the Lease Term, which increases on a yearly basis by 2.75%.The Company will also be obligated to pay to the Landlord for certain costs, taxes and operating expenses related to the Premises, subject to certain exclusions.
The Company will be entitled to an improvement allowance of approximately $4.8 million for certain permitted costs related to the design and construction of Company improvements to the Premises.
As a security deposit, the Company has obtained a standby letter of credit (the “Letter of Credit”) in the amount of approximately $1.7 million, which may be drawn down by the Landlord to be applied for certain purposes upon the Company’s breach of any provisions under the Lease. Provided that no default occurs under the terms of the Lease, the Company will be entitled to reduce the amount of the Letter of Credit down to $0.8 million upon meeting certain conditions.
The Lease contains customary provisions allowing the Landlord to terminate the Lease if the Company fails to remedy a breach of any of its obligations within specified time periods, or upon bankruptcy or insolvency of the Company.
The foregoing description of the Lease does not purport to be complete and is qualified in its entirety by reference to such agreement, which the Company intends to file as an exhibit to its next periodic report filed under the Securities Exchange Act of 1934, as amended.
About Proteostasis Therapeutics, Inc. (NASDAQ:PTI)
Proteostasis Therapeutics, Inc. is a biopharmaceutical company. The Company is engaged in discovery and development of therapeutics that treat diseases caused by an imbalance in the proteostasis network, a set of pathways that control protein biosynthesis, folding, trafficking and clearance. It has developed the Disease Relevant Translation (DRT) technology platform, a drug screening approach for identifying highly translatable therapeutics based on predictive and functionally pertinent phenotypic assays and disease relevant models. Using this platform, it has identified a new class of small molecules, amplifiers that modulate proteins in the proteostasis network. It is developing and intend to commercialize its lead amplifier of CFTR protein, PTI-428, to improve CFTR protein function. It also focuses on developing PTI-NC-733, PTI-130, Usp14 program and unfolded protein response (UPR) program. PTI-130 is a small molecule amplifier.
