Aptinyx Secures $50 Million Growth Capital Credit Facility from K2 HealthVentures

Rhea-AI Summary

Aptinyx Inc. (Nasdaq: APTX) has announced a $50 million loan facility with K2 HealthVentures to support its clinical pipeline for treating brain disorders. The initial $15 million will be received immediately, with an option for an additional $10 million. The remaining $25 million is contingent upon achieving specific milestones. CEO Norbert Riedel emphasized that this financing will bolster their efforts as they advance towards three Phase 2 clinical study readouts and launch two additional studies.

Positive

• Secured a $50 million loan facility to support clinical development.
• Immediate access to $15 million for growth capital.
• Potential for an additional $10 million based on future needs.
• Demonstrates strong partnerships with K2 HealthVentures.

Negative

• None.

EVANSTON, Ill.--(BUSINESS WIRE)--

Aptinyx Inc. (Nasdaq: APTX), a clinical-stage biopharmaceutical company developing transformative therapies for the treatment of brain and nervous system disorders, today announced that it has entered into a $50 million loan facility and security agreement with K2 HealthVentures (K2HV). The funds will provide general growth capital as Aptinyx advances its late-stage clinical pipeline of novel NMDA modulators.

“Access to this capital provides us with additional financial resources as we advance toward three Phase 2 clinical study readouts in 2022 and initiate two additional Phase 2 studies in the coming months,” said Norbert Riedel, Ph.D., chief executive officer of Aptinyx. “We are pleased with the terms of the loan and the flexibility this facility offers to Aptinyx. The K2HV team has an excellent track record of partnering with innovative growth companies and an astute perspective on R&D value creation. We appreciate their support as we advance our pipeline.”

Aptinyx will receive $15 million after execution of the loan agreement from K2HV, with an option to draw down an additional $10 million, which will support the future clinical development of multiple pipeline programs. Under the terms of the agreement, the remaining $25 million is subject to the achievement of certain terms and conditions, including regulatory and developmental milestones. Further information with respect to the loan agreement is set forth in a Form 8-K filed by Aptinyx with the Securities and Exchange Commission on September 16, 2021.

“Aptinyx is pioneering a novel approach to treating serious neurologic disorders and has demonstrated compelling clinical evidence that supports the high potential of its platform,” said Parag Shah, founding managing director and chief executive officer of K2HV. “Our financial commitment to Aptinyx reflects the confidence we have in the team and its development strategy and aligns with our mission of delivering innovative treatments to improve the lives of patients.”

About Aptinyx

Aptinyx Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of proprietary synthetic small molecules for the treatment of brain and nervous system disorders. Aptinyx has a platform for discovery of novel compounds that work through a unique mechanism to modulate—rather than block or over-activate—NMDA receptors and enhance synaptic plasticity, the foundation of neural cell communication. The company has three product candidates in clinical development in central nervous system indications, including chronic pain, post-traumatic stress disorder, and cognitive impairment. Aptinyx is also advancing additional compounds from its proprietary discovery platform, which continues to generate a rich and diverse pipeline of small-molecule NMDA receptor modulators with the potential to treat an array of neurologic disorders. For more information, visit www.aptinyx.com or follow Aptinyx on Twitter @Aptinyx.

About K2 HealthVentures

K2 HealthVentures is an alternative investment firm focused on providing flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare industries. The investment team comprises collaborative, experienced professionals with diverse backgrounds in finance and operations, as well as deep domain knowledge across various healthcare sectors. A uniquely flexible, permanent capital structure enables the firm to provide creative, adaptive financing solutions and meet the evolving capital needs of its portfolio companies as they grow. K2HV is driven by dual goals of Profit and Purpose—aiming to fuel the growth of innovative companies that will ultimately improve the lives of patients and giving a percentage of investment profits back to underserved areas in healthcare. www.k2hv.com

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, statements regarding the company’s business plans and objectives, including future plans or expectations for the company’s product candidates, the potential therapeutic effects of the company’s product candidates, expectations regarding its uses and sufficiency of capital, success and timing of its current and planned clinical studies, and the effect of the COVID-19 pandemic on the foregoing. Risks that contribute to the uncertain nature of the forward-looking statements include: the success, cost, and timing of the company’s product candidate development activities and planned clinical studies; the company’s ability to execute on its strategy; positive results from a clinical study may not necessarily be predictive of the results of future or ongoing clinical studies; regulatory developments in the United States and foreign countries; as well as those risks and uncertainties set forth in the company’s most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Aptinyx undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Source: Aptinyx Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210916005242/en/

Investor & Media Contact:

Patrick Flavin

Aptinyx Inc.

ir@aptinyx.com or corporate@aptinyx.com

847-871-0377

Source: Aptinyx Inc.

FAQ

What is Aptinyx's recent loan agreement worth?

Aptinyx recently announced a loan agreement worth $50 million with K2 HealthVentures.

How much money will Aptinyx receive initially from the loan?

Aptinyx will receive an initial amount of $15 million following the execution of the loan agreement.

What is the purpose of the loan facility for Aptinyx?

The loan facility will provide growth capital as Aptinyx advances its late-stage clinical pipeline.

What are the milestones associated with the remaining loan amount?

The remaining $25 million of the loan is subject to achieving specific regulatory and developmental milestones.