Item 1.01 Entry Into a Material Definitive Agreement
On February 18, 2022, Inhibrx, Inc. (the "Company") and Oxford Finance LLC
("Oxford") entered into a fourth amendment (the "Fourth Amendment") to the Loan
and Security Agreement between the Company and Oxford, dated as of July 15,
2020, as amended by the First Amendment dated November 12, 2020, the Second
Amendment dated December 15, 2020, and the Third Amendment dated June 18, 2021
(collectively, the "Oxford Loan Agreement").
The Fourth Amendment provides for the funding of an additional $130.0 million in
gross proceeds, $40.0 million of which was funded upon execution of the
amendment, with the remaining $90.0 million to be funded in three separate
tranches upon future milestone events. The outstanding term loans will mature on
January 1, 2027 and bear interest at (1) 8.19% plus (2) the greater of (i) the
30-day U.S. Dollar LIBOR rate reported in the Wall Street Journal or (ii) 0.11%.
The repayment schedule provides for interest-only payments through February 1,
2025, with principal payments beginning on March 1, 2025. The interest-only
payments may be extended by 12 months through February 2026, with principal
payments beginning on March 1, 2026, if the Company raises at least $100.0
million in upfront licensing or partnership proceeds by February 2025. The
interest-only period is followed by 23 months of equal payments of principal
plus interest, or if the interest-only period is extended, by 11 months of equal
payments of principal plus interest. In accordance with the Fourth Amendment,
the Company paid a one-time amendment fee of $1.1 million, which is equal to the
amount accreted for the final payment on the existing tranches at the time of
the amendment.
Upon the maturity date of January 1, 2027, a final payment of 9.0% of the total
principal amount will be due to Oxford. The Company has the option to prepay the
outstanding balance of the term loan in full prior to maturity, subject to a
prepayment fee ranging from 1.0% to 3.0%, depending on the timing of the
prepayment. The Company granted Oxford a first priority lien against all of its
assets with a positive lien on intellectual property. Further, the Company
issued to Oxford warrants to purchase 40,000 shares of the Company's common
stock at a strike price of $45.00 per share.
Except as noted above, the material terms of the Oxford Loan Agreement remain
substantially unchanged.
The foregoing description of the Fourth Amendment is qualified in its entirety
by reference to the Fourth Amendment attached as Exhibit 10.1 to this Current
Report on Form 8-K and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item 1.01 of this Current Report on Form 8-K is
incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
Fourth Amendment to Loan and Security Agreement, dated February 18, 2022,
10.1 by and between the Company and Oxford Finance LLC
99.1 Press Release issued by Inhibrx, Inc. on February 22, 2022
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