Eloxx Pharmaceuticals, Inc. announced that it has entered into a loan and security agreement with Hercules Capital, Inc. and Hercules Capital IV, L.P. for gross proceeds of up to $30,000,000 on September 30, 2021. The loan comprises of three tranches of $12,500,000, $7,500,000 and $10,000,000 respectively. The tranche two of loan will be available for funding until August 15, 2022 and tranche three of loan will be available for funding until April 1, 2023. The loan will carry interest at a floating rate equal to the greatest of 9.50% per annum and the sum of 6.25% plus the prime rate, as published in the Wall Street Journal. The interest is payable on monthly basis. The company will be required to make principal payments on the outstanding balance of the term loan commencing on April 1, 2023 in 36 equal monthly installments, plus interest; provided that if the company has achieved the milestones described above relating to the availability of the tranche three loan advance on or prior to April 1, 2023, then the term loan amortization date is automatically extended to October 1, 2023 or April 1, 2024. The loan will mature on April 1, 2025. The company may prepay the outstanding principal amount of the loan advances at any time in whole, but not in part, plus accrued and unpaid interest and a prepayment premium equal to 3% of the principal amount outstanding if prepaid on or prior to the 1st anniversary of the date of agreement, 2% of the principal amount outstanding if prepaid after the 1st anniversary the date of agreement but on or prior to the 2nd anniversary of the date of agreement, and 1% of the principal amount outstanding if prepaid after the 2nd anniversary of the date of agreement but on or prior to the maturity date. On the same date, the company raised its first tranche close of $12,500,000.