Verona Pharma (VRNA) announced today November 23, 2020 that it has entered into a debt financing facility for up to $30 million with Silicon Valley Bank. Furthermore, the Verona will get more flexibility from non-dilutive capital.
Under the agreement with Silicon Valley Bank, the company would be able to borrow up to $30 million in threeinstallments, $5 million at closing, $10 million available through June 30, 2022 and an additional $15 million available through June 30, 2023. The last two installments are subjected to the achievement of certain clinical development milestones and other specified conditions. The loan repayment will start from November 1, 2024 and the period prior December 1, 2023 will be interest only.
President and CEO of Verona PharmaDavid Zaccardelli said that they are pleased to secure this credit facility which will provide us the flexibility to access non-dilutive capital upon achievement of certain clinical development milestones. The credit facility will provide more support for pre-commercialization activities for ensifentrine.
The ENHANCE Phase 3 trials was commenced in September 2020 with nebulized ensifentrine for the maintenance treatment of chronic obstructive pulmonary disease (“COPD”). The company is also conducting a Phase 2 clinical trial to check ensifentrine delivered via pressurized metered-dose inhaler (“pMDI”)formulation in patients with moderate to severe COPD and a pilot study with pMDI ensifentrine in U.S. patients hospitalized with COVID-19.