The proceeds from the loan will be used in part to finance the analysis of unblinded data on BiovaxID, an active immunotherapeutic in a pivotal Phase III study of non-Hodgkin’s lymphoma.
Biovest issued secured promissory notes in the aggregate amount of $8.5 millions to Valens, which bear interest at prime + 2% with a six-month term. Biovest paid closing fees and costs of approximately $300,000 and a portion of the loan proceeds was used to prepay interest and principal due to Biovest’s senior secured lender, Laurus Master Fund.
Biovest also granted a royalty in the aggregate amount of 7% of worldwide net sales of the BiovaxID vaccine to Valens Offshore and Valens US pursuant to a royalty agreement.