Deerfield’s commitment of funding, which includes $7.5 million upfront, is in the form of an interest-bearing loan that can be drawn down at pre-determined intervals over a three-year period. The availability of one-third of the $30 million is subject to the achievement of specific milestones associated with the development of the company’s Marqibo and menadione product candidates. The outstanding principal and interest, which accrues at the rate of 9.85% per annum, is due by October 2013.
Deerfield received a one-time 3.5% cash commitment fee and six-year warrants to purchase approximately 5.2 million shares of Hana’s common stock upon execution of the loan agreement at an exercise price of $1.31 per share. Additional warrants will be issuable if the company draws down the portion of the loan facility subject to milestones. The warrants are subject to certain anti-dilution features.
Steven Deitcher, president and CEO of Hana Biosciences, said: “This financing commitment provides us the resources to advance our pipeline of product candidates through the next stages of development and potential value formation. We are aligned with respect to Hana’s pipeline potential, development strategy and future goals. We are focused on product development and dedicated to the steady growth of the company over the next several years.”