PRINCETON, N.J., Oct. 4 /PRNewswire-FirstCall/ -- Pharmasset, Inc. (Nasdaq: VRUS) has entered into a working capital loan agreement with Horizon Technology Finance LLC. Subject to certain terms and conditions of the agreement, Horizon will advance $10 million to Pharmasset in the near future. At its option, Pharmasset may receive a second loan of $10 million by March 31, 2008 and a third loan of $10 million by November 30, 2008, provided conditions precedent to making the additional loans are satisfied. Horizon has committed to $20 million of the loan facility, and Horizon intends to syndicate the remaining $10 million.
"When combined with our existing cash position, this financing is expected to fully fund the clevudine Phase 3 registration studies through the New Drug Application filing with the FDA," stated Kurt Leutzinger, Pharmasset's Executive Vice President & Chief Financial Officer. "In light of the recent and anticipated progress of our clinical development programs, we believe this facility also supports our goal of minimizing equity dilution for our stockholders by providing flexibility regarding the timing of any future equity financings."
For each $10 million loan, Pharmasset will pay interest only for the
first 15 months followed by 30 equal monthly installments of principal and
accrued interest. The interest rate for the initial loan will be 12%. In
addition, Pharmasset issued to Horizon a seven-year warrant to purchase up
to 149,377 shares of common stock at an exercise price of $12.05 per share,
a volume- weighted average of recent closing prices. The warrant is
immediately exercisable for 66,390 shares, and the remaining 82,987 shares
become exercisable in varying increments upon the achi
|SOURCE Pharmasset, Inc.|
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