Verenium Corp., an industrial biotechnology company focused on the development and commercialization of high-performance enzymes, announced on Dec. 10 the signing of a $22.5 million secured debt financing with Athyrium Opportunities Fund.
Net proceeds after estimated expenses will be approximately $21.3 million, providing Verenium with capital to continue to advance its product pipeline to commercialization, enhance its manufacturing capabilities and fund general working capital purposes.&nbsp; The debt bears interest at 11.5 percent per annum, with interest payments due quarterly over a five-year term and the principal balance due as a lump-sum payment at maturity in December 2017.
In connection with the financing, Verenium issued warrants to Athyrium to purchase approximately 2.9 million shares of common stock at an exercise price of $2.49 per share, representing a 17.5 percent premium over the closing price on the date of the debt agreement.&nbsp; The warrants have a seven-year term and are immediately exercisable.
"We are pleased to be teaming with a long term strategic investor such as Athyrium in this transaction," said Jeffrey Black, senior vice president and chief financial officer at Verenium.&nbsp; "We anticipate that this financing will allow us to invest in our business and fund our growth initiatives through to operating profitability with minimal dilution to existing shareholders.&nbsp; Importantly, with our financing needs now addressed, our management team can focus on unlocking the value in our business through new innovative products and partnerships."&nbsp;&nbsp;&nbsp;&nbsp;
"Athyrium is excited to work with Verenium and its management team," said Richard Pines, a Partner of Athyrium. "We believe this transaction enables Verenium to continue to deploy its proven technology by creating highly differentiated enzyme products across a wide range of sectors and industrial applications."
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Verenium Corp., an industrial biotechnology company focused on the development and commercialization of high-performance enzymes, announced on Dec. 10 the signing of a $22.5 million secured debt financing with Athyrium Opportunities Fund.

Verenium announces $22.5 million, five-year secured financing

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