Kura Oncology, Inc. entered into a senior secured term loan agreement of $125 million on November 2, 2022. The transaction will include participation from Bristol-Myers Squibb Company for common shares, and Hercules Private Credit Fund 1 L.P., Hercules Private Global Venture Growth Fund I L.P. & Hercules Capital IV, L.P., funds managed by Hercules Capital, Inc. for term loan. The company will receive first tranche of up to $25 million of which $10 million was funded immediately after the effective date, two additional tranches of term loans in the amounts of up to $35 million and $40 million, respectively, which will become available to the company upon the company's satisfaction of certain terms and conditions set forth in the loan agreement, and a final tranche of term loans in the amount of up to $25 million, subject to the lenders' investment committee approval in its sole discretion.

The company also issue warrants at an exercise price of $14.38 per share. The warrants may be exercised through the earlier of (i) the seventh anniversary of November 2, 2022 and (ii) the consummation of certain acquisition transactions involving the Company, as set forth in the warrants. The loans under the Loan Agreement bear interest at an annual rate equal to the greater of the prime rate as reported in The Wall Street Journal minus 6.25% plus 8.65%; and 8.65%.

The common shares offering is expected to close on or about November 3, 2022.