Castle Biosciences Announces Early Repayment of Debt

Rhea-AI Summary

Castle Biosciences (Nasdaq: CSTL) has fully prepaid its term loan facility, improving its financial standing. The prepayment of approximately $21.6 million, which includes principal and interest, signifies a strategic move post its successful equity financing. This action terminates all obligations under the loan agreement, enhancing cash savings and enabling further development of its product pipeline. The company focuses on dermatologic cancer diagnostics and aims to leverage its strengthened financial position to support and grow its marketed products in 2021.

Positive

• Full prepayment of $21.6 million term loan enhances balance sheet.
• Increased cash savings from loan prepayment.
• Strengthened financial position allows advancement of product pipeline.

Negative

• None.

Castle Biosciences, Inc. (Nasdaq: CSTL), a skin cancer diagnostics company providing personalized genomic information to improve cancer treatment decisions, today announced it prepaid in full its outstanding term loan facility to further improve its balance sheet.

“Following our recent successful equity financing, full prepayment of our outstanding debt signifies another step in fortifying our balance sheet,” said Derek Maetzold, president and chief executive officer of Castle Biosciences. “We believe our strong financial position allows us to further advance our product pipeline and provide additional support for our currently marketed products and drive continued growth as we move into 2021.”

Castle’s term loan facility with Oxford Finance, LLC, and Silicon Valley Bank was originally funded on Nov. 30, 2018. On Dec. 21, 2020, the Company paid the lenders approximately $21.6 million, which includes pay-off amounts for principal, interest, fees, reimbursement of expenses and other items. The prepayment will result in a net cash savings to the Company and terminates all commitments and obligations under the loan agreement.

About Castle Biosciences

Castle Biosciences (Nasdaq: CSTL) is a commercial-stage dermatologic cancer company focused on providing physicians and their patients with personalized, clinically actionable genomic information to make more accurate treatment decisions. The Company currently offers tests for patients with cutaneous melanoma (DecisionDx^®-Melanoma, DecisionDx^®-CMSeq), cutaneous squamous cell carcinoma (DecisionDx^®-SCC), suspicious pigmented lesions (DecisionDx^® DiffDx™-Melanoma) and uveal melanoma (DecisionDx^®-UM, DecisionDx^®-PRAME and DecisionDx^®-UMSeq). For more information about Castle’s gene expression profile tests, visit www.CastleTestInfo.com. Castle also has active research and development programs for tests in other dermatologic diseases with high clinical need. Castle Biosciences is based in Friendswood, Texas (Houston), and has laboratory operations in Phoenix, Arizona. For more information, visit www.CastleBiosciences.com.

DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, DecisionDx DiffDx-Melanoma, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq and are trademarks of Castle Biosciences, Inc.

Forward-Looking Statements

The information in this press release contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning our financial position and the expected cash savings resulting from the prepayment of our loan facility. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the effects of the COVID-19 pandemic on our business and our efforts to address its impact on our business and our ability to maintain compliance with the covenants in our debt facility, the timing and amount of revenue we are able to recognize in a given fiscal period, unexpected delays in planned launch of our pipeline products, the level and availability of reimbursement for our products, our ability to manage our anticipated growth and the risks set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, and in our other filings with the SEC. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201222005112/en/

FAQ

What recent financial move did Castle Biosciences make regarding its debt?

Castle Biosciences fully prepaid its outstanding term loan facility, totaling approximately $21.6 million.

How will the prepayment of the loan affect Castle Biosciences financially?

The prepayment improves the company's balance sheet and results in increased net cash savings.

What is the significance of Castle Biosciences' loan prepayment?

It signifies a strategic step to fortify the company's financial position following recent equity financing.

What does Castle Biosciences aim to achieve in 2021?

The company plans to advance its product pipeline and support its marketed products for continued growth.