Cerecor draws $10 million under $35 million Horizon debt financing

By Devika Patel

Knoxville, Tenn., Aug. 2– Cerecor Inc. drew down another $10 million under its $35 million debt financing agreement with Horizon Technology Finance Corp., according to a press release.

With this tranche, the company has drawn a total of $30 million under the agreement, with a $20 million initial tranche settling earlier.

Each advance of the loan will be repaid in 42 monthly payments.

This second tranche was made available in connection with the company’s successful positive initial results from a phase 1b proof-of-concept study evaluating CERC-002.

With the achievement of the interest-only extension milestone, which the company met upon completing the second drawdown, the interest-only period was extended to two years followed by monthly payments of principal and accrued interest through the maturity date.

An additional $5 million may be funded upon Cerecor achieving certain milestones.

Proceeds will be used to support the ongoing clinical development of key investigational product candidates within its pipeline and for general working capital purposes. As of June 30, 2021, the Company had $40.4 million in cash and cash equivalents, which excludes the second drawdown of $10 million under the debt financing agreement.

The neurological and psychiatric biopharmaceutical company is based in Baltimore.

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