- Restructuring agreement with K2 HealthVentures (K2HV) agrees to fully repay and fulfill outstanding obligations for $27.5 million upfront payment and grant of contingent value rights and stock acquisition rights to K2HV
- Headcount reduced by approximately 44% further as it continues to explore strategic alternatives
AUSTIN, Texas, June 16, 2023 (Globe Newswire) — Molecular Templates, Inc. (NASDAQ: MTEM, “Molecular Templates” or “MTEM”))) is a proprietary targeted biologic therapeutic The company, which develops genetically engineered toxoids (“ETBs”) to create novel therapies with potent and differentiated mechanisms of action against cancer, today announced a restructuring agreement (“K2HV”) with K2 HealthVentures (“K2HV”). announced that it has signed an amended contract. ) fulfill and discharge MTEM’s outstanding secured debt and terminate all other debt under the existing debt financing facility between Molecular Templates and K2HV. Molecular Templates also announced a restructuring plan that includes laying off its current workforce as it continues to explore strategic alternatives.
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The amended agreement provides for:
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- MTEM has repaid $27.5 million of approximately $37.8 million senior secured debt with K2HV
- The remaining approximately $10 million will be converted into securities instruments and will be repaid based on specified multipliers and other terms or otherwise upon the occurrence of certain specific events such as asset sales or successful BD transactions. increase. , MTEM may choose to repay part or all of the balance. Alternatively, K2HV has the right to convert such Contingent Value Rights of $3 million into up to 6,124,011 shares of common stock.
- K2HV has a warrant to purchase 5,103,343 shares of common stock at an exercise price of approximately $0.39
- In the event of a change of control transaction, K2HV would receive an additional $2.5 million, the terms of which are defined in the amended agreement.
Molecular Templates previously announced that it had hired Stifel, Nicolaus & Company to assist Molecular Templates.1 Initiating a comprehensive evaluation of strategic alternatives, including but not limited to potential financing/recapitalization opportunities, sale of all or part of the company, mergers, or other strategic transactions . No timeline has been set for the completion of this strategic review process and there is no assurance that the transaction will be completed as a result of this strategic review. Related to the evaluation of strategic alternatives and to expand resources to better position the organization, Molecular Templates today implemented a restructuring plan that includes reducing its current workforce by approximately 44%.
Molecular Templates will continue to support the collaboration with BMS and its clinical research.
About molecular templates
Molecular Templates is a clinical-stage biopharmaceutical company focused on the discovery and development of targeted biological therapeutics. Our proprietary drug platform technology, known as Modified Toxin Bodies (ETBs), leverages the indigenous biology of genetically engineered forms of the Shiga-like toxin A subunit to deliver potent and differentiated mechanisms of action against cancer. We will create novel therapeutics with an introduction.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Molecular Templates disclaims any intent or obligation to update these forward-looking statements and claims the law’s safe harbor protections for forward-looking statements. All statements, other than statements of historical fact, regarding strategy, future operations, future financial condition, future revenues, anticipated expenses, prospects, plans and objectives contained in this press release are forward-looking statements. Further, in this press release, “may”, “could”, “should”, “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” ” is used or used, “anticipate” and similar expressions and variations thereof in connection with Molecular Template may identify forward-looking statements. Examples of such statements include, but are not limited to, Molecular Template’s ability to continue as a going concern. Expectations regarding the completion of the workforce reduction plan. Outlook for review and evaluation of potential strategic alternatives by Molecular Templates. and the terms, timing, structure, benefits and costs of strategic deals, and whether the deal will be completed.
Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Actual events or results may differ materially from those set forth in the forward-looking statements as a result of a variety of factors, including but not limited to the following. Loosen the molecular template. Whether Molecular Templates’ cash resources are sufficient to fund its continuing operations beyond the third quarter of 2023. and risks identified under the heading “Risk Factors” in Molecular Templates’ filings with the Securities and Exchange Commission. There is no guarantee that Molecular Templates’ drug or biologic drug candidates will be successfully developed, manufactured, or commercialized. There can be no assurance that the final results of clinical trials will support the regulatory approvals necessary to market the product or that there will be future prospects. The information provided here is certified to be accurate. The forward-looking statements contained in this press release speak only as of the date of this press release and Molecular Templates specifically disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise. To do.
contact address:
Dr. Grace Kim
Head of Investor Relations
Grace.kim@mtem.com
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1 NTD: “Company” is not a defined term.
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