Celsion closes second $5M tranche under Hercules Loan Facility Agreement

Celsion (CLSN) announced that it has closed the second $5M tranche under its $20M Loan and Security Agreement dated as of November 25, 2013 with Hercules Technology (HTGC). The proceeds will be used to fund the $3.4M upfront cash payment associated with Celsion's acquisition of EGEN, which was announced separately today, as well as Celsion's transaction costs associated with the EGEN transaction. Upon the closing of this second tranche, Celsion has drawn down a total of $10M under the November 25, 2013 agreement with Hercules. The funding is in the form of secured indebtedness bearing interest at a floating prime-based variable rate. In conjunction with the November 2013 loan agreement, Celsion issued Hercules a warrant exercisable for a total of 194,986 shares of Celsion's common stock at a per share exercise price of $3.59, with 50% immediately exercisable and the remaining 50% exercisable upon Hercules' funding of this $5M draw-down. The Hercules Warrant will expire November 25, 2018.