COMPASS Pathways Secures Up To $50M In Term Loan Facility With Hercules Capital
Portfolio Pulse from Lara Goldstein
COMPASS Pathways (NASDAQ:CMPS) has secured a term loan agreement with Hercules Capital Inc. (NYSE:HTGC) for up to $50 million to fund its COMP360 Phase 3 program in Treatment-Resistant Depression (TRD). The initial data from the program is expected by summer 2024. Following the agreement, COMPASS drew an initial $30 million at closing on June 30. The remaining $20 million will be available in two tranches, subject to certain conditions. Hercules Capital had previously entered into a similar agreement with COMPASS’ partner, atai Life Sciences (NASDAQ:ATAI).
July 05, 2023 | 5:20 pm
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NEUTRAL IMPACT
atai Life Sciences, a partner of COMPASS Pathways, had previously entered into a similar term loan agreement with Hercules Capital.
The news indirectly mentions atai Life Sciences in relation to a previous agreement with Hercules Capital. The impact on its stock price is uncertain.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Hercules Capital has entered into a term loan agreement with COMPASS Pathways, providing up to $50 million. This follows a similar agreement with COMPASS’ partner, atai Life Sciences.
The loan agreement with COMPASS Pathways expands Hercules Capital's portfolio and strengthens its position in the biotech sector. However, the impact on its stock price is uncertain.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
COMPASS Pathways has secured a term loan agreement with Hercules Capital for up to $50 million, which will support its COMP360 Phase 3 program. This funding strengthens the company's balance sheet and extends its cash runway.
The secured funding will strengthen COMPASS Pathways' financial position and support its ongoing program, which could potentially lead to positive outcomes and increased investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100