- Restructuring agreement with K2 HealthVentures (K2HV) to fully discharge and satisfy outstanding debt owed to K2HV for the prepayment of
$27.5 million and the granting of contingent value rights and warrants - Additional reduction-in-force by approximately 44% as it continues to explore strategic alternatives
The Amending Agreement provides for the following:
- MTEM has paid down
$27.5M of its~$37.8M senior secured debt obligation with K2HV - The remaining balance of
~$10M will be converted into a security instrument that will be paid back upon the occurrence of certain specified events, such as a successful asset sale or BD transactions, based on specified multipliers and other terms, or, in the alternative, MTEM may elect to pay off the balance in part or in full. Alternatively, K2HV has the right to convert$3M of such contingent value rights into up to 6,124,011 shares of common stock - K2HV has a warrant to purchase 5,103,343 shares of common stock at an exercise price of
~$0.39 - In the event of a Change in Control transaction, as such term is defined in the Amending Agreement, K2HV will receive an additional
$2.5M
Previously,
About
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Molecular Templates disclaims any intent or obligation to update these forward-looking statements and claims the protection of the Act’s Safe Harbor for forward-looking statements. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar expressions and their variants, as they relate to Molecular Templates may identify forward-looking statements. Examples of such statements include but are not limited to Molecular Templates’ ability to continue as a going concern; expectations regarding the completion of its workforce reduction plan; the prospects for Molecular Templates’ review and evaluation of potential strategic alternatives; and the terms, timing, structure, benefits and costs of any strategic transaction and whether one will be consummated at all.
Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to the following: the availability of financing on commercially reasonable terms in order to avoid the need to pursue a dissolution or wind down of
Contacts:
Dr. Grace Kim
Head of Investor Relations
grace.kim@mtem.com
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1 NTD: The “Company” is not a defined term.
Source:
2023 GlobeNewswire, Inc., source