NEW YORK (GenomeWeb News) – Entelos said on Friday that it has signed a debt financing agreement with Imperium Master Fund for a cash loan of $6.5 million.
Entelos said it plans to use $1.5 million of the proceeds to repay debt related to its acquisition of Iconix Biosciences in August. The company will use the remaining $5 million as long-term working capital.
Imperium will provide Entelos with $1.5 million under a secured bridge note and $5 million under secured convertible debentures.
In connection with the bridge note, which will mature in 15 months, Entelos issued to Imperium a five year-term warrant to purchase up to 943,576 shares of common stock at an exercise price per share of $0.4501073 per share.