MONTVALE, N.J., March 19, 2007/PRNewswire-FirstCall/ -- Memory Pharmaceuticals Corp. (Nasdaq: MEMY) today announced that it closed a $10 million term loan agreement with Hercules Technology Growth Capital, Inc. on March 16, 2007. Under the terms of the loan agreement, Hercules will advance $6 million to the Company today and the Company has the option to request up to an additional $4 million under the loan agreement from September 15, 2007 through December, 31, 2007.
"This financing provides the Company with a relatively non-dilutive route to greater
financial flexibility, and will enable us to increase our efforts on achieving
near-term milestones and advancing our diverse portfolio of clinical,
preclinical and exploratory research programs," said Michael Smith, Vice
President of Business Development.
The Company will make interest-only payments on any advances under the loan agreement
through June 2008. Beginning in July 2008, the balance will be payable in equal
monthly installments of principal and interest, with the final payment in
November 2010.
As part of the transaction, the Company issued to Hercules a five-year warrant to
purchase 598,086 shares of the Company’s common stock at an exercise price per
share of $2.09.
About the Company
Memory Pharmaceuticals Corp., a biopharmaceutical company, is focused on developing
innovative drugs for the treatment of debilitating CNS disorders such as
Alzheimer's disease, schizophrenia, depression and bipolar disorder. For
additional information, please visit our website at
http://www.memorypharma.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that are subject to risks and
uncertainties. All statements, other than statements of historical facts,
regarding management's expectations, beliefs, goals, plans or Memory
Pharmaceuticals’ prospects, future financial position, future revenues and
projected costs should be considered forward-looking. Readers are cautioned
that actual results may differ materially from projections or estimates due to
a variety of important factors, including the risks and uncertainties
associated with: obtaining additional financing to support Memory
Pharmaceuticals' R&D and clinical activities and operations; conducting
preclinical and clinical trials of Memory Pharmaceuticals’ drug candidates that
demonstrate these candidates' safety and effectiveness; receiving unfavorable
results from clinical trials of Memory Pharmaceuticals’ drug candidates;
obtaining regulatory approvals to conduct clinical trials and to commercialize
Memory Pharmaceuticals’ drug candidates; Memory Pharmaceuticals’ ability to
enter into and maintain collaborations with third parties for its drug
development programs; Memory Pharmaceuticals’ dependence on its collaborations
and its license relationship with Bayer; achieving milestones under Memory
Pharmaceuticals’ collaborations; Memory Pharmaceuticals’ dependence on
preclinical and clinical investigators, preclinical and clinical research
organizations, manufacturers and consultants; and protecting the intellectual
property developed by or licensed to Memory Pharmaceuticals. These and other
risks are described in greater detail in Memory Pharmaceuticals’ filings with
the Securities and Exchange Commission. Memory Pharmaceuticals may not actually
achieve the goals or plans described in its forward-looking statements, and
investors should not place undue reliance on these statements. Memory
Pharmaceuticals disclaims any intent or obligation to update any
forward-looking statements as a result of developments occurring after the date
of this press release.
SOURCE Memory Pharmaceuticals Corp.
http://www.memorypharma.com/
