Tevogen Bio Holdings Inc. (NASDAQ:TVGN) shares are rising Monday after the company secured up to $50 million of financing from an existing investor.
What Happened: After the market close on Friday, Tevogen announced that it entered into a binding term sheet agreement with an existing investor to secure up to $50 million of financing.
The financing is aimed at supporting continued research and development efforts for Tevogen's TVGN 489. In addition, the financing will be utilized to start clinical trials for virally induced cancers and multiple sclerosis.
"We strongly believe Tevogen's business model of efficient operations and innovative thinking allows us to meaningfully expand our R&D efforts and investments in Tevogen AI with the support of this additional financing. I'm pleased we are taking this significant step to help patients by providing affordable and accessible personalized T cell therapies for large patient populations." said Dr. Ryan Saadi, CEO of Tevogen.
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The financing contains a $36 million line of credit from an existing investor and $14 million in private placement. The line of credit grants Tevogen access to $1 million per month at an interest rate of either the daily secured overnight financing rate plus 2% or 7% accruing quarterly, depending on which is lower.
"Our continued investment emphasizes our conviction in Tevogen, its leadership and novel technology. Tevogen's cost-effective business model and the promise of commercial success make this a compelling transaction," said investor Dr. Manmohan Patel, who is taking part in the financing transaction.
Price Action: According to Benzinga Pro, Tevogen stock was trading 15.7% higher at $1.15 Monday morning.
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