NEW YORK (GenomeWeb) – Biocept has entered into a $10 million loan and security agreement with Oxford Finance, the San Diego-based oncology diagnostics firm said in a US Securities and Exchange document on Tuesday.
Biocept received a $5 million loan on April 30 and will receive another $5 million loan prior to Dec. 31, 2015, subject to the firm achieving at least $9 million in product and service revenues for a six-month period ending no later than Nov. 30, 2015.
In 2013, Biocept posted $134,245 in total revenues, it reported recently.
The firm is developing tests based on its circulating tumor cells and DNA technology platform, and it currently offers the OncoCEE-BR test for breast cancer. It went public in February, raising $19 million in gross proceeds.
Biocept also said in its SEC filing that it has issued to Oxford a warrant to purchase up to 57,966 shares of its common stock at an exercise price of $4.72 per share. Upon the second loan, the company will issue additional warrants entitling the lenders to purchase additional shares of Biocept equal to 5 percent of the funded amount divided by the exercise price.
Biocept said in the SEC document that the exercise price will be the lower of the closing share price of Biocept's stock on the day before the funding of the second loan, or the 10-day average closing price per share prior to the funding date of the second loan.
The warrants have a 10-year expiration term.
Biocept noted that the credit facility "is secured by substantially all of our personal property other than our intellectual property."