atai Life Sciences Secures Term Loan Facility for up to $175 Million from Hercules Capital
August 15, 2022 06:55 ET | Source: atai Life Sciences
– Non-dilutive financing facility, plus $312M existing cash on hand as of June 30, 2022, gives atai access to up to $487M to continue developing next generation mental health treatments
– Flexible draw availability provides optionality to optimize liquidity and capital structure moving forward
NEW YORK and BERLIN, Aug. 15, 2022 (GLOBE NEWSWIRE) — atai Life Sciences N.V. (Nasdaq: ATAI) (“atai”), a clinical-stage biopharmaceutical company aiming to transform the treatment of mental health disorders, today announced that the company has entered into a term loan facility for up to $175 million with Hercules Capital, Inc. (NYSE: HTGC).
“The non-dilutive capital from this term loan facility combined with the cash already on our balance sheet further reinforces atai’s financial strength, providing us with strategic flexibility as we build a leading mental health company committed to addressing the significant unmet patient needs in neuropsychiatry,” said Florian Brand, Chief Executive Officer and Co-Founder of atai. “While we continue to execute on our diversified pipeline of differentiated drug candidates, we look forward to several anticipated near-term catalysts across our key programs, including Phase 2a data of PCN-101 in treatment-resistant depression towards the end of this year.”
“Hercules is pleased to partner with atai as it advances a pipeline of novel assets designed to bring new treatment options to patients suffering from mental health disorders,” said Janice Bourque, Managing Director at Hercules Capital. “The significant commitment from Hercules is intended to help atai execute on its important mission and reflects our dedication to financing innovative life science companies,” added Michael Dutra, Managing Director at Hercules Capital.
Under the terms of the $175 million loan facility, $15 million was drawn at closing, with an additional $20 million available to be drawn at atai’s option by March 15, 2023, and thereafter, an additional $25 million available to be drawn at atai’s option by December 15, 2023. The remaining $115 million becomes available in tranches through March 31, 2025, subject to the satisfaction of certain conditions. The loan facility bears interest at a calculated prime-based variable rate currently at 10.05% and matures 48 months from closing, which may be extended to 54 months upon achievement of certain performance milestones. The interest only period is 30 months from closing, which may be extended to up to 42 months upon achievement of certain milestones.
Additional details of the loan agreement will be filed with the Securities and Exchange Commission on a Current Report on Form 8-K.
Latham & Watkins served as legal counsel to atai. Morrison & Foerster LLP served as legal counsel to Hercules Capital.
About atai Life Sciences
atai Life Sciences is a clinical-stage biopharmaceutical company aiming to transform the treatment of mental health disorders. Founded in 2018 as a response to the significant unmet need and lack of innovation in the mental health treatment landscape, atai is dedicated to acquiring, incubating, and efficiently developing innovative therapeutics to treat depression, anxiety, addiction, and other mental health disorders.
By pooling resources and best practices, atai aims to responsibly accelerate the development of new medicines across its companies to achieve clinically meaningful and sustained behavioral change in mental health patients.
atai’s vision is to heal mental health disorders so that everyone, everywhere can live a more fulfilled life. For more information, please visit https://www.atai.life/
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