Achieve Life Sciences announces $ 25 million loan facility
SEATTLE and VANCOUVER, British Columbia, December 22, 2021 (GLOBE NEWSWIRE) – Achieve Life Sciences, Inc. (Nasdaq: ACHV), a clinical-stage pharmaceutical company engaged in the development and global commercialization of cytisinicline for smoking cessation and nicotine addiction, today announced that it has entered into a $ 25 million debt agreement with Silicon Valley Bank and SVB Innovation Credit Fund VIII, LP (“SVB”). The proceeds and funds available under the debt agreement are expected to fund the completion of the clinical development program for cytisinicline for smoking cessation.
Under the conditional convertible debt agreement, SVB will fund $ 15 million in the form of convertible debt owed to Achieve at closing on December 22, 2021. Subject to the terms and conditions of the debt agreement and the mutual consent of Achieve and SVB (including each After receipt by the lender of all necessary internal and credit approvals), Achieve may borrow additional non-convertible term loans in an aggregate initial principal amount of up to $ 10 million of dollars.
âWe are delighted to have entered into a financing agreement with Silicon Valley Bank,â said John Bencich, CEO of Achieve Life Sciences. SVB is a leading bank in the life sciences industry, and their investment in Achieve Life Sciences further strengthens our ability to successfully complete our second Phase 3 clinical trial, ORCA-3. “
Under the terms of the agreement, the outstanding loans mature on December 22, 2023 and will bear interest in the aggregate of (a) a floating rate per annum equal to the greater of (i) 2.25% and (ii) the rate prime less 1.0%, interest payable monthly in arrears, and (b) 7.0% per annum, interest compounded monthly.
Subject to certain terms and conditions, outstanding convertible debt (principal and accrued and unpaid interest) may be converted into ordinary shares of Achieve at the option of such lender or its assignee at any time prior to the repayment of such debt, when a conversion price equal to $ 9.34 per share, subject to adjustment for stock splits, stock dividends, reorganizations and recapitalizations. In addition, all outstanding convertible debts will be compulsorily converted into ordinary shares of Achieve, at the conversion price, on that date, if applicable, when the closing price per share of the ordinary shares of Achieve has been equal to or greater than at $ 24.00 for thirty consecutive transactions. days before that date. As long as the loan remains outstanding, SVB is not permitted to short sell or engage in any other hedging transaction involving Achieve common stock.
Achieve has the right at any time to repay and repay all (but not less than all) of the outstanding convertible debt prior to its conversion by paying a premium determined on the basis of the date of such repayment.
Additional terms of the agreement can be found in the company’s Form 8-K filed on December 22, 2021.
About Achieve and cytisinicline
Tobacco use is currently the leading cause of preventable death which is responsible for more than eight million deaths worldwide and nearly half a million deaths in the United States each year.1.2 Over 87% of lung cancer deaths, 61% of all lung disease deaths and 32% of all coronary heart disease deaths are attributable to smoking and exposure to second-hand smoke.2 Achieve’s goal is to fight the global epidemic of smoking and nicotine dependence through the development and commercialization of cytisinicline.
Cytisinicline is a plant alkaloid with high binding affinity to the nicotinic acetylcholine receptor. It is believed to help quit smoking by interacting with nicotine receptors in the brain reducing the severity of nicotine withdrawal symptoms and reducing the reward and satisfaction associated with smoking.
Cytisinicline is an investigational product candidate under development for the treatment of nicotine dependence and has not been approved by the Food and Drug Administration for any indication in the United States. For more information on cytisinicline and Achieve, visit www.achievelifesciences.com.
About Silicon Valley Bank
For nearly 40 years, Silicon Valley Bank (SVB) has been helping innovative companies and their investors quickly advance bold ideas. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps meet the unique needs of innovators. Learn more at svb.com.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the timing and nature of the business of clinical development and commercialization of cytisinicline, the product use of the SVB loan facility, the potential market size for cytisinicline, the potential benefits of cytisinicline, the ability to discover and develop new uses of cytisinicline, including, but not limited to, an electronic cigarette cessation product, and the development and effectiveness of new treatments. All statements other than statements of historical fact are statements which could be considered as forward-looking statements. Achieve may not actually achieve its plans or product development objectives on a timely basis, if at all, or otherwise achieve its intentions or meet its expectations or projections disclosed in these forward-looking statements. These statements are based on the current expectations and beliefs of management and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in forward-looking statements, including including, inter alia, the risk that cytisinicline may not demonstrate hypothetical or expected benefits; the risk that Achieve will not be able to obtain additional funding to finance the development of cytisinicline; the risk that cytisinicline will not receive regulatory approval or be marketed successfully; the risk that new developments in the smoking cessation landscape will require changes in business strategy or clinical development plans; the risk that Achieve’s intellectual property will not be adequately protected; general commercial and economic conditions; risks related to the impact on our business of the COVID-19 pandemic or similar public health crises and other factors described in the risk factors set out in documents filed by Achieve with the Securities and Exchange Commission from time to time to other, including annual reports on Achieve 10-K form and quarterly reports on 10-Q form. Achieve assumes no obligation to update any forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, except as may be required by applicable law.
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1 World Health Organization. WHO Report on the Global Tobacco Epidemic, 2019. Geneva: World Health Organization, 2017.
2 US Department of Health and Human Services. The Health Consequences of Smoking – 50 Years of Progress. A report from the Surgeon General, 2014.