Molecular Templates, Inc. (Nasdaq: MTEM, “Molecular Templates” or “MTEM”) is a clinical-stage company focused on the discovery and development of proprietary targeted biological therapeutics, engineered toxin bodies (“ETBs”). is a biopharmaceutical company. The company, which develops novel therapeutics with potent and differentiated mechanisms of action for cancer, today announced that it has entered into K2 HealthVentures, Inc. to pay off and discharge MTEM’s outstanding secured debt and terminate all other debt. announced that it has signed a restructuring agreement (“amendment agreement”) with K2HV). Under the existing debt financing scheme between Molecular Templates and his K2HV.
Molecular Templates also announced a restructuring plan that includes laying off its current workforce as it continues to explore strategic alternatives.
The amended agreement provides that: MTEM has repaid $27.5 million of its $37.8 million senior secured debt with K2HV
The remaining $10 million will be converted into securities instruments that will be repaid based on specified multipliers and other conditions upon the occurrence of certain specific events, such as a successful asset sale or successful BD trade. MTEM may choose to repay part or all of the outstanding 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 $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.
Previously, Molecular Templates used Molecular Announced the hiring of Stifel, Nicolaus & Company to assist Templates1. companies, 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, when used or used in this press release, “may”, “could”, “should”, “expected”, “believed”, “estimated” Words such as “will”, “expected”, “intended” and “planned” are used. “predict” and similar expressions and variations thereof in connection with molecular templates 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. The outlook for Molecular Templates’ review and evaluation of potential strategic alternatives, 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 will be sufficient to fund its continuing operations beyond the third quarter of 2023, and whether Molecular Templates Whether there is sufficient funding for the risks identified. 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:
Dr. Grace Kim
Email: grace.kim@mtem.com
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