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EpiCept amends loan and security agreement

EpiCept announced that it has amended the company’s Loan and Security Agreement with MidCap Financial, LLC effective Aug. 27. As a result of a principal prepayment of $1.2M, the current principal balance of the loan is $4.1M. The next principal payment is due on Jan. 15, 2013, and regularly scheduled monthly principal payments will commence Feb. 1, 2013 until the scheduled maturity of the loan in March 2014. The company will continue to make monthly payments of interest to the Lender as per the Loan and Security Agreement. EpiCept also agreed, pursuant to the amendment, to maintain a cash balance of $1.1M in a bank account that is subject to the security interest maintained by MidCap under the loan agreement. Further, the company has committed to signing a definitive agreement, acceptable to MidCap, by Oct. 15 with respect to a sale or partnering transaction and to consummate such a transaction as soon as is practical but in any event no later than Jan. 15, 2013.