Full Press Release Details
Corporation Enters into $10 Million Strategic Loan Facility with Silicon Valley Bank
to the Balance Sheet Leverages Strong Equity Structure
Debt and Gains Five Months of Operating Runway at Very Low Cost of Capital
N.J. (June 21, 2021) - Celsion Corporation (NASDAQ: CLSN), a clinical-stage company focused on DNA-based immunotherapy and
next-generation vaccines, announces it has entered into a $10 million loan facility with Silicon Valley Bank (SVB). Celsion immediately
used $6 million from this facility to retire all outstanding indebtedness with Horizon Technology Finance Corporation. The remaining
$4 million will be available to be drawn down up to 12 months after closing and will be used for working capital and to fund the advancement
of the Company's product pipeline, including GEN-1 for the treatment of newly diagnosed advanced ovarian cancer, as well as other
strategic initiatives intended to broaden its product pipeline.
loan facility provides us with financial and operating flexibility at very favorable terms, strengthens our balance sheet with the elimination
of the Horizon debt and allows us to meet several key, value-driving milestones with our product-development initiatives," said
Michael H. Tardugno, Celsion's chairman, president and chief executive officer. "Including the $4 million that will become
available to us in a year, we will have sufficient cash to fund current and planned operations into early 2025. We appreciate the support
of SVB and their confidence in Celsion and the management team."
Gordon, Managing Director of Life Science and Healthcare at Silicon Valley Bank, said, "We are pleased Celsion has selected SVB
as its financial partner for this $10 million loan facility. We have confidence in the Company's business strategy and look forward
to Celsion reaching critical milestones including with GEN-1 for ovarian cancer and other strategic initiatives to broaden its product
funding is in the form of money market secured indebtedness bearing interest at a calculated WSJ Prime-based variable rate (currently
3.25%). Payments under the loan agreement are interest only for the first 24 months after loan closing, followed by a 24-month amortization
period of principal and interest through the scheduled maturity date.
nearly 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides
targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international
and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com.
is a fully integrated, clinical stage biotechnology company focused on advancing a portfolio of innovative cancer treatments, including
immunotherapies and DNA-based therapies; and a platform for the development of nucleic acid vaccines currently focused on SARS-CoV2.
The company's product pipeline includes GEN-1, a DNA-based immunotherapy for the localized treatment of ovarian cancer. ThermoDox ,
a proprietary heat-activated liposomal encapsulation of doxorubicin, is under investigator-sponsored development for several cancer indications.
Celsion also has two platform technologies for the development of novel nucleic acid-based immunotherapies and other anti-cancer DNA
or RNA therapies. Both are novel synthetic, non-viral vectors with demonstrated capability in nucleic acid cellular transfection. For
more information on Celsion, visit www.celsion.com.
statements in this news release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation,
statements relating to the offering and the use of proceeds therefrom, unforeseen changes in the course of research and development activities
and in clinical trials; the uncertainties of and difficulties in analyzing interim clinical data, particularly in small subgroups that
are not statistically significant; FDA and regulatory uncertainties and risks; the significant expense, time and risk of failure of conducting
clinical trials; the need for Celsion to evaluate its future development plans; possible acquisitions or licenses of other technologies,
assets or businesses; possible actions by customers, suppliers, competitors or regulatory authorities; and other risks detailed from
time to time in the Celsion's periodic filings with the Securities and Exchange Commission. Celsion assumes no obligation to update
or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
Vice President and CFO