Chimerix (NASDAQ: CMRX) Enters Amended Loan Agreement with Silicon Valley Bank

Chimerix Inc. announced on December 23, 2024, that the company has entered into an Amended and Restated Loan and Security Agreement with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company. This agreement establishes a term loan facility, known as the Credit Facility, with an aggregate principal amount of up to $30.0 million, available in two tranches.

The first tranche, Tranche A, amounts to $20.0 million and is available from the effective date through February 28, 2026, in increments of $10.0 million. The second tranche, Tranche B, worth $10.0 million, is subject to the lender’s credit approval and is available until February 28, 2027. The proceeds from this Credit Facility are earmarked for working capital and general corporate purposes.

While the company is not obligated to draw down any amount under the Credit Facility, as of the effective date, no amounts were drawn. The Term Loans associated with this facility will follow an interest-only structure until March 1, 2026, with a possibility of extension to March 1, 2027 under specific conditions.

Interest rates for the borrowings will be based on a floating per annum rate, calculated as the greater of the prime rate or 7.0%. The company has agreed to a final payment of 4.0% of the funded Term Loans upon the termination of the Credit Facility. Additionally, prepayment fees will apply if the Term Loans are repaid before the Maturity Date.

Furthermore, the Loan Agreement includes customary affirmative and negative covenants, as well as events of default, giving the Lender the authority to accelerate the Company’s obligations as outlined in the agreement.

In connection with the Loan Agreement, Chimerix issued a Warrant to Purchase Stock to the Lender, allowing the acquisition of up to 149,253 shares of the company’s common stock, with the exercise price set at $2.68 per share.

The company also noted that it has regained compliance with Nasdaq Listing Rule 5450(a)(1), as confirmed by the Nasdaq Listing Qualifications Department. Additionally, Chimerix has submitted a complete new drug application (NDA) to the U.S. Food and Drug Administration for dordaviprone as a treatment for recurrent H3 K27M-mutant diffuse glioma in the United States.

Chimerix advises caution regarding forward-looking statements included in its reports, emphasizing the associated risks and uncertainties. These statements relate to potential borrowings under the Credit Facility, Nasdaq compliance, and the NDA submission, among other topics.

Investors are reminded that actual results may vary, impacted by market conditions and specific risks inherent in Chimerix’s business. The company pledges to update stakeholders on any revisions to this report in due course, underlining its commitment to providing accurate information in line with regulatory requirements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Chimerix’s 8K filing here.

Chimerix Company Profile

Chimerix, Inc, a biopharmaceutical company, develops medicines to improve and extend the lives of patients facing deadly diseases. Its pipeline products include ONC201 a program that is in Phase 3 clinical trial for treating patients with H3 K27M-mutant diffuse glioma, as well as in Phase 2 clinical trial for the treatment of rare neuroendocrine tumors; and ONC206, an imipridone, Dopamine Receptor D2 (DRD2) antagonist, and caseinolytic protease P (ClpP) agonist, which is in Phase 1 clinical trial for adult and pediatric patients with primary central nervous system tumors.