ALX Oncology Holdings Inc., (“ALX Oncology”) (Nasdaq: ALXO) a clinical-stage immuno-oncology company developing therapies that block the CD47 checkpoint pathway, today announced it has entered into a loan facility agreement with Oxford Finance LLC and Silicon Valley Bank for up to $100 million of non-dilutive financing. The facility will support the continued development of Viracept, a next-generation CD47-blocking therapeutic.
“We appreciate the support of Oxford Finance and Silicon Valley Bank. The non-dilutive capital from this term loan facility combined with the cash already on our balance sheet further strengthens our financial position allowing us to advance our lead program, evorpacept, through multiple clinical trials and milestones in the coming years,” said Peter Garcia, Chief Financial Officer of ALX Oncology. “With the ability to draw down up to $50 million of the facility at our discretion, we expect to be able to extend our cash runway to mid-2025.”
“ALX Oncology’s CD47 blocker, evorpacept, has demonstrated promising clinical results compared to other CD47 blockers,” said Christopher A. Herr, Senior Managing Director at Oxford Finance. “We are pleased to partner with Silicon Valley Bank to support ALX in its continued development and advancement of its pipeline.”
“Silicon Valley Bank is excited to expand our partnership with ALX Oncology,” said Kale Frank, Director of Life Science and Healthcare at Silicon Valley Bank. “We continue to be impressed with ALX’s clinical progress, and this large commitment will support ALX’s important mission to help patients fight cancer.”
Under the terms of the loan agreement, ALX Oncology drew $10 million of an initial $50 million tranche at closing, with the remaining $40 million available at its discretion through the end of 2023. ALX Oncology also has access to up to an additional $50 million with $12.5 million available in each of two tranches based upon the achievement of milestones related to the development of evorpacept and one pre-clinical product candidate, and $25 million available at the Lenders’ discretion. The loan carries an interest-only period of 36 months (extendable to 48 months) and a total term of 59 months. There are no warrants or financial covenants in the agreement.