NEW YORK (GenomeWeb) – Interleukin Genetics said on Tuesday that it has raised $5 million in private financing and entered into a loan and security agreement for another $5 million.
The private financing results from a securities purchase agreement between the Waltham, Mass.-based genetic testing firm and new and existing investors, including New Enterprise Associates and Bay City Capital. Interleukin has agreed to issue an aggregate of about 50.1 million shares of its common stock at $.1003 per share, as well as warrants to purchase up to an aggregate of 50.1 million shares of its common stock.
The warrants have a term of seven years and an exercise price of $.1003 per share.
Interleukin also entered into a venture loan and security agreement with Horizon Technology Finance to borrow $5 million and issued warrants to Horizon to purchase a total of about 2.5 million shares of its stock at $.1003 per share. The lender warrants have a term of 10 years. Interleukin has agreed to repay the loan in 45 monthly payments, including an initial 15-month period of interest-only payments, it said.
Proceeds from the private financing and the loan will be used to accelerate the commercialization of Interleukin's tests, including PerioPredict, which identifies genetic variations that increase the risk for periodontal disease. The funding will also go toward general corporate and working capital purposes.
As of Sept. 30, Interleukin had $2.6 million in cash and cash equivalents.