Tevogen Bio Holdings Inc. announced a private placement to issue non convertible loan for the gross proceeds of $36 million and common shares for the gross proceeds of $14 million on May 10, 2024. The transaction will include participation from existing investor. The transaction is expected to close in 2nd quarter of 2024.

The financing consists of a combination of a $36 million line of credit to be provided to Tevogen Bio by an existing investor and $14 million in a private placement at a 30% discount to a future 10-day volume weighted average price after that price reaches $10 per share. The line of credit allows company to access $1 million per month at an interest rate of the lower of (a) the daily SOFR plus 2.0% and (b) 7.0%, accruing quarterly and payable in common stock. Draws can be made under the line of credit for up to 36 months, and the maturity date of each draw will be four years after the draw.

The line of credit will be accessible immediately following closing of the transaction. The private placement can also include any remaining available and undrawn amount of the line of credit.