Agenus secures $22 million mortgage to enhance cash reserves

In Lexington, Massachusetts, Agenus Inc., a company specializing in immuno-oncology, has successfully obtained a $22 million non-amortizing mortgage. This financial maneuver is backed by its Biologics CMC facility located in Berkeley and a 66-acre biomanufacturing-zoned property situated in Vacaville, California. The deal, facilitated by L&L Capital, has resulted in $20 million in net proceeds after accounting for closing costs and an interest reserve, effectively strengthening the company's cash position in anticipation of further financial infusions in the near future. The mortgage is structured with a two-year term, featuring interest rates of 12% for the first year and increasing to 13% for the second year, with interest being paid partly in cash and partly in common stock. Importantly, the company is set to implement a strategic operational realignment with a projected 60% reduction in annual external expenditures, which is expected to bolster its capabilities in executing late-stage development and regulatory strategies for treating patients with microsatellite-stable colorectal cancer (MSS CRC). Clinical data that has emerged from trials of Botensilimab (BOT) and Balstilimab suggests significant potential in addressing the needs of patients with limited treatment options. Approximately 1,100 patients have been treated with botensilimab in early-phase clinical trials, showing promising responses in various metastatic, late-line cancers. This financial strategy and the innovative therapies in development position Agenus to better navigate the complex landscape of immunotherapy and optimize its outreach for both regional and global registration pathways.