WINSTON-SALEM, N.C., -- Tengion, Inc. (OTCQB: TNGN), a leader in regenerative medicine, today announced that it has entered into definitive agreements for a one-month bridge loan with leading investors. The bridge loan is expected to facilitate the issuance of at least $15 million of convertible debt later in September. Tengion also announced today that a sixth patient has been successfully implanted in the ongoing Phase 1 clinical trial of its most advanced product candidate, the Neo-Urinary Conduit.
The bridge loan totaled $1.0 million and was funded by institutional and strategic healthcare investors. Each of these investors is expected to participate in the larger convertible debt financing. Together, the two financings are expected to provide sufficient capital to reach the Company's two major milestones, including the completion of the Phase 1 clinical trial for the Neo-Urinary Conduit and an Investigational New Drug (IND) filing to the U.S. Food & Drug Administration for the Neo-Kidney Augment. ROTH Capital Partners, LLC is acting as sole placement agent to Tengion.
"These financings will allow us to fund the continued execution of our key program objectives, including completing enrollment for the Neo-Urinary Conduit Phase 1 trial and filing an IND for the Neo-Kidney Augment program during the first half of 2013," said John Miclot, Tengion's President and Chief Executive Officer.
"The successful enrollment of the sixth patient in the Phase 1 trial for the Neo-Urinary Conduit further bolsters our confidence that we will meet our goal to implant up to 10 patients by the end of 2012, and we continue to work closely with our lead investigators as well as train the surgeons at our four additional clinical sites in order to enroll the remaining four patients this year. We look forward to providing additional updates on the progress of both lead programs in the months to come."
PR Newswire