The funds extend the expected cash flow through the end of 2023 and enable the advancement of the clinical program for ASLAN003.
SINGAPORE, 13 Jul 2021 (GLOBE NEWS) – ASLAN Pharmaceuticals (Nasdaq:ASLN), a clinical immunology biopharmaceutical company that develops innovative treatments to change patients’ lives, today announced the closure of a line of credit to K2 HealthVentures (K2HV). Under the terms of the credit line, K2HV will provide ASLAN up to $ 45 million in secured debt financing. The line of credit consists of a close-financed loan with an initial maturity of $ 20 million, with the remaining $ 25 million, subject to certain conditions.
The company intends to use the loan to advance the clinical development of ASLAN003, a promising candidate for the potential treatment of autoimmune gastrointestinal and skin diseases, and for general corporate purposes. ASLAN plans to begin Phase 2 clinical trials of ASLAN003 in inflammatory bowel disease in early 2022.
Dr. Karl Firth, CEO of ASLAN Pharmaceuticals, said:: “These resources provide additional working capital, strengthen our balance sheet and increase our financial flexibility by increasing our expected cash flow by the end of 2023 as we look forward to expanding our clinical activities on ASLAN003. We are delighted to partner with the K2HV team, which has significant experience supporting innovative companies in the biology field. ”
“We are delighted to provide support for ASLAN as it approaches key milestones in the development of ASLAN003 and ASLAN004 value over the next twelve months,” added Anup Arora, Founding Managing Director and Chief Investment Officer, K2HV… “ASLAN’s commitment to developing new treatments that can change the lives of patients is in line with our investment strategy. We look forward to working with the ASLAN team to realize their vision.… “
In addition, under the financing terms, ASLAN intends to repay outstanding loans with CSL Finance Pty Ltd in the amount of $ 4.2 million.
Armentum Partners acted as financial advisor to ASLAN in connection with the financing. Additional information regarding the line of credit will be set out in Form 6-K, which ASLAN plans to file with the Securities and Exchange Commission after the close.
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About ASLAN Pharmaceuticals
ASLAN Pharmaceuticals (Nasdaq:ASLN) is a biopharmaceutical company specializing in clinical immunology, developing innovative treatments that will change the lives of patients. ASLAN is currently evaluating ASLAN004, a potential first-in-class antibody targeting the IL-13 receptor for atopic dermatitis, and ASLAN003, a potent oral DHODH inhibitor that is being developed to treat autoimmune diseases. ASLAN has a team in the Bay Area and Singapore. For more information visit www.aslanpharma.com or subscribe to ASLAN on LinkedIn…
This release and accompanying financial information, if any, contain forward-looking statements. These statements are based on the current beliefs and expectations of the management of ASLAN Pharmaceuticals Limited and / or its affiliates (the “Company”). These forward-looking statements may include, but are not limited to, statements regarding the Company’s business strategy and clinical development plans; the company’s plans to develop and commercialize ASLAN003 and ASLAN004; safety and efficiency of ASLAN003 and ASLAN004; Company plans and expected timing of clinical trials and clinical trial results for ASLAN003 and ASLAN004; the potential of ASLAN003 and ASLAN004 for the treatment of autoimmune diseases and atopic dermatitis, respectively; the total amount of debt financing to be financed; and the Company’s confidence that its cash and cash equivalents will be sufficient to fund operations at the end of 2023. The Company’s estimates, forecasts and other forward-looking statements are based on management’s current assumptions and expectations regarding future events and trends that affect or may affect the business, strategy, operations or financial performance of the Company, and inherently involve significant known and unknown risks and uncertainties. Actual results and timing of events may differ materially from those anticipated in such forward-looking statements as a result of a variety of risks and uncertainties, including unexpected safety or efficacy data observed in preclinical or clinical studies; the activation rate of clinical centers or the number of participants in clinical trials is lower than expected; the impact of the COVID-19 pandemic on the Company’s business and the global economy; general market conditions; changes in the competitive environment; and the Company’s ability to obtain sufficient funding to fund its strategic and clinical development plans. Other factors that could cause actual results to differ from those expressed or implied in such forward-looking statements are described in the documentation and reports of the US Securities and Exchange Commission (Commission File No. 001-38475), including the Annual Report Companies by form. 20-F filed with the US Securities and Exchange Commission on April 23, 2021. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “may,” “could,” “will,” “strive,” “evaluate,” “continue,” “expect,” “intend,” “expect,” “plan,” or the negative meaning of these terms and similar expressions that convey the uncertainty of future events or results are intended to determine estimates, projections and other forward-looking statements. Estimates, forecasts and other forward-looking statements are valid only as of the date they were made and, except as required by law, the Company assumes no obligation to update or revise any estimates, forecasts or forward-looking statements.
About K2 HealthVentures
K2 HealthVentures is an alternative investment firm specializing in providing flexible, long-term financing solutions for innovative private and public life sciences and healthcare companies. The investment team consists of seasoned professionals with diverse backgrounds in finance and operations, as well as in-depth knowledge of various healthcare sectors. A uniquely flexible, constant capital structure allows the firm to offer creative, adaptive financial solutions and meet the changing capital needs of its portfolio companies as they grow. K2HV has a dual goal of profit and the goal of driving the growth of innovative companies that will ultimately improve the lives of patients, and returning a percentage of the investment return back to underserved healthcare areas. www.k2hv.com