Inhibitor Therapeutics, Inc. and Mayne Pharma Ventures Pty Ltd Enters Into Loan Agreement
December 17, 2020 at 05:03 pm EST
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Inhibitor Therapeutics, Inc. and Mayne Pharma Ventures Pty Ltd, the Company’s majority stockholder entered into a letter agreement for a term debt facility pursuant to which Mayne Pharma provided an aggregate $231,000 credit facility to the Company (the Facility). The Facility bears interest at the rate equal to the interest rate tied to the US Bank Prime Rate plus 5.00% (the Interest Rate) with a maturity date of twenty four (24) months from the date of the first drawdown (the Maturity Date). The Interest Rate shall be adjusted for each drawdown on the Facility in accordance with changes in the monthly average of the US Bank Prime Rate. The Facility shall be available to the Company as follows: (i) $81,000 may be drawn upon request at any time in the first annual quarter of the Facility starting December 14, 2020 and (ii) so long as there is no event of default and Mayne Pharma does not give notice in its discretion 30 days before the start of a quarter that it is discontinuing the funding, $75,000 may be drawn in the second and third annual quarters of the Facility, respectively. Any drawdown by the Company must equal or exceed $25,000. The Company shall have one twelve month repayment free advance period from its first drawdown on the Facility. Each other advance on the Facility will be amortized over twelve equal monthly payments of principal plus interest. No premium is payable in the event that the Company pays all principal, interest and other outstanding amounts due to Mayne Pharma prior to the Maturity Date. The Facility is unsecured, contains no financial covenants, requires no guarantees and is not accompanied by any equity component such as warrants. The Loan Agreement includes certain limited representations and warranties and negative covenants of the Company. An event of default under the Loan Agreement includes, among other things, (i) the Company breaches its obligations under the Loan Agreement, and where that breach is capable of remedy it does not remedy the breach within 20 business days after receipt of a notice from the Mayne Pharma of the breach, (ii) Mayne Pharma validly terminates the Third Amended and Restated Supply and License Agreement dated December 17, 2018 between the Company and Mayne Pharma, or (iii) the Company becomes insolvent, including by becoming the subject of the filing or institution of bankruptcy, liquidation or dissolution proceedings.
Inhibitor Therapeutics, Inc. is a pharmaceutical development company. The Company is focused on developing and commercializing therapeutics based on already approved active pharmaceuticals that have patent-protected methods of use and/or methods of delivery for patients with certain cancers and certain non-cancerous proliferation disorders. Its primary focus is on the development of therapies initially for basal cell carcinoma (BCC), prostate and lung cancers in the United States utilizing itraconazole, a drug approved by the United States Food and Drug Administration (FDA) to treat fungal infections. The Company has developed intellectual property and know-how related to the treatment of cancer patients using itraconazole. The Company's intellectual property in the form of issued United States patents includes treatment and prognostic monitoring of proliferation disorders using hedgehog pathway inhibitors, and treatment of lung cancer using hedgehog pathway inhibitors.
INHIBITOR THERAPEUTICS, INC. 
