WARREN, N.J., May 10, 2024 (GLOBE NEWSWIRE) — Tevogen Bio Holdings Inc. (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.
