LONDON (Alliance News) - Mereo BioPharma Group PLC said Monday that it completed a revision of the terms of its credit facility with Silicon Valley Bank and Kreos Capital.
The revised terms of the facility now include an extension to the interest only period to April 2019, the potential to further extend both the interest only and the capital repayment periods and a reduction in the interest rate to 8.5% from 9%.
Furthermore, the company issued warrants giving the two lenders the right to subscribe for 225,974 shares at a price of 231 pence each.
"With its existing cash position, together with this credit facility, Mereo has a strong balance sheet with sufficient cash resources to fund its key clinical programmes," the biopharmaceutical company said.
Shares in Mereo were untraded at 231.00 pence each.