Peregrine Pharma in up to $10M loan deal

California, USA-based Peregrine Pharmaceuticals says that it has entered into a loan agreement for up to $10.0 million in proceeds. The initial funding of $5.0 million is expected to close within the next 10 days. The deal includes an option to acquire a second $5.0 million tranche in the future, upon the firm's satisfaction of certain conditions. MidCap Financial and BlueCrest Capital Finance are providing the debt financing. Proceeds will be used to help fund the company's seven ongoing clinical trials in cancer and serious viral diseases and for general corporate purposes.

"In this extraordinarily difficult financing environment, we are pleased to have entered into this loan agreement with two organizations with extensive experience in the health care field," said Paul Lytle, chief financial officer of Peregrine. "This capital infusion will enable us to continue advancing our clinical programs without tapping into the equity markets during these challenging market conditions. We are optimistic that this loan will enable us to achieve a number of value-driving clinical milestones over the coming months, enabling us to progress these programs while waiting for the current financial turbulence to subside," he added