Tevogen Bio Announces Up to $50 Million in Financing to Further Advance Operational Objectives
May 10 2024 - 5:40PM
Tevogen Bio Holdings Inc. (“Tevogen” or “Tevogen Bio”) (Nasdaq:
TVGN), a clinical-stage specialty immunotherapy biotech pioneer
developing off-the-shelf, genetically unmodified T cell
therapeutics in oncology, neurology, and virology, has entered into
a binding term sheet [with an existing investor] to secure up to
$50 million of financing.
This financing supports Tevogen Bio’s pursuit of expanding
research and development efforts with a focus on continued clinical
development of the company’s initial product, TVGN 489, from its
ExacTcell technology platform. In January 2023, Tevogen Bio
announced positive proof-of-concept clinical trial results of TVGN
489 for treatment of high-risk patients. The financing will also be
utilized to facilitate Tevogen Bio’s efforts to start additional
clinical trials for virally induced cancers and multiple
sclerosis.
“The financing will help us to pursue our goals and we are
gratified by the support of our existing shareholders,” said Dr.
Ryan Saadi, Tevogen Bio Founder and Chief Executive Officer. “We
strongly believe Tevogen’s business model of efficient operations
and innovative thinking allows us to meaningfully expand our
R&D efforts and investments in Tevogen AI with the support of
this additional financing. I’m pleased we are taking this
significant step to help patients by providing affordable and
accessible personalized T cell therapies for large patient
populations.”
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 Tevogen Bio 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.
“Our continued investment emphasizes our conviction in Tevogen,
its leadership and novel technology. Tevogen’s cost-effective
business model and the promise of commercial success make this a
compelling transaction,” said investor Dr. Manmohan Patel, MD,
member of the counterparty in the financing transaction.
Subject to the completion of definitive documents, the financing
is anticipated to close by the end of the second quarter of
2024.
About Tevogen
Tevogen is a clinical-stage specialty immunotherapy company
harnessing one of nature’s most powerful immunological weapons,
CD8+ cytotoxic T lymphocytes, to develop off-the-shelf, genetically
unmodified precision T cell therapies for the treatment of
infectious diseases, cancers, and neurological disorders, aiming to
address the significant unmet needs of large patient populations.
Tevogen Leadership believes that sustainability and commercial
success in the current era of healthcare rely on ensuring patient
accessibility through advanced science and innovative business
models. Tevogen has reported positive safety data from its
proof-of-concept clinical trial, and its key intellectual property
assets are wholly owned by the company, not subject to any
third-party licensing agreements. These assets include three
granted patents and twelve pending patents, two of which are
related to artificial intelligence.
Tevogen is driven by a team of highly experienced industry
leaders and distinguished scientists with drug development and
global product launch experience. Tevogen’s leadership believes
that accessible personalized therapeutics are the next frontier of
medicine, and that disruptive business models are required to
sustain medical innovation.
Forward Looking Statements
This press release contains certain forward-looking statements,
including without limitation statements relating to: expectations
regarding the benefits of the financing; Tevogen’s development of,
the potential benefits of, and patient access to its product
candidates for the treatment of infectious diseases, cancer and
neurological disorders, including TVGN 489 for the treatment of
COVID-19 and Long COVID; Tevogen’s ability to develop additional
product candidates, including through use of Tevogen’s ExacTcell
platform; the anticipated benefits of ExacTcell; expectations
regarding Tevogen’s future research and development and clinical
trials; the healthcare and biopharmaceutical industries; and
Tevogen’s ability to generate revenue in the future.
Forward-looking statements can sometimes be identified by words
such as “may,” “could,” “would,” “expect,” “possible,” “potential,”
“goal,” “opportunity,” “project,” “believe,” “future,” and similar
words and expressions or their opposites. These statements are
based on management’s expectations, assumptions, estimates,
projections and beliefs as of the date of this presentation and are
subject to a number of factors that involve known and unknown
risks, delays, uncertainties and other factors not under the
company’s control that may cause actual results, performance or
achievements of the company to be materially different from the
results, performance or other expectations expressed or implied by
these forward-looking statements.
These factors include, but are not limited to: the parties may
not enter into definitive transaction documents on the terms
described, on a timely basis, or at all; that Tevogen will need to
raise additional capital to execute its business plan, which may
not be available on acceptable terms or at all; the effect of the
recent business combination with Semper Paratus Acquisition
Corporation (the “Business Combination”) on Tevogen’s business
relationships, operating results, and business generally; costs
related to the Business Combination and the failure to realize
anticipated benefits of the Business Combination; the outcome of
any legal proceedings that may be instituted against Tevogen
related to the Business Combination; changes in the markets in
which Tevogen competes, including with respect to its competitive
landscape, technology evolution, or regulatory changes; changes in
domestic and global general economic conditions; the risk that
Tevogen may not be able to execute its growth strategies or may
experience difficulties in managing its growth and expanding
operations; the risk that Tevogen may not be able to develop and
maintain effective internal controls; the failure to achieve
Tevogen’s commercialization and development plans, and identify and
realize additional opportunities, which may be affected by, among
other things, competition, the ability of Tevogen to grow and
manage growth economically and hire and retain key employees; the
risk that Tevogen may fail to keep pace with rapid technological
developments to provide new and innovative products and services or
make substantial investments in unsuccessful new products and
services; the ability to develop, license or acquire new
therapeutics; the risk of regulatory lawsuits or proceedings
relating to Tevogen’s business; uncertainties inherent in the
execution, cost, and completion of preclinical studies and clinical
trials; risks related to regulatory review, and approval and
commercial development; risks associated with intellectual property
protection; Tevogen’s limited operating history; and those factors
discussed in Tevogen’s Annual Report on Form 10-K and other filings
with the SEC.
You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Tevogen
undertakes no obligation to update any forward-looking statements,
except as required by applicable law.
Contacts
Tevogen Bio CommunicationsT: 1 877 TEVOGEN, Ext 701
Communications@Tevogen.com
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