Agenus Inc. (NASDAQ:AGEN) shares are trading higher in the morning session on Wednesday.
The company has secured a $22 million non-amortizing mortgage, backed by its Berkeley-based Biologics CMC facility and its 66-acre biomanufacturing-zoned property in Vacaville, California.
The deal, facilitated by L&L Capital, provides $20 million in net proceeds after closing costs and interest reserve, boosting Agenus' cash position ahead of anticipated further cash infusions in the coming months.
The mortgage is structured with a two-year term, carrying interest rates of 12% for the first year and 13% for the second, with payments split 50% in cash and 50% in common stock.
In parallel, Agenus is executing a Strategic Operational Realignment Plan to focus its efforts on its promising botensilimab/balstilimab (BOT/BAL) in MSS colorectal cancer (CRC).
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The plan includes a projected 60% reduction in annual external expenditures and a transition of the company's CMC capabilities into a fee-for-service biologics manufacturing business. These measures, along with additional planned optimizations, are expected to reduce Agenus' FY 2025 cash burn to approximately $100 million.
BOT/BAL has demonstrated strong clinical activity in MSS CRC and other cancers resistant to existing therapies. Agenus is preparing for late-stage development and regulatory strategies, targeting both regional and global registration pathways. The company's strategic realignment aims to revolutionize cancer treatment while positioning Agenus for long-term growth and patient impact.
Price Action: AGEN shares are trading higher by 16.3% to $3.93 at last check Wednesday.
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