DM Healthcare Investment


Humacyte and Oberland Capital Announce Funding Arrangement Totaling Up to $160 Million


May 12, 2023


        • $40 million upfront, $20 million upon FDA acceptance of HAV BLA in vascular trauma, $40 million upon FDA approval of HAV in vascular trauma, $50 million upon achievement of certain sales milestones, and $10 million equity option
  • Proceeds to support planned development and commercialization of HAV and earlier-stage product candidates

 

DURHAM, N.C., May 12, 2023 (GLOBE NEWSWIRE) -- Humacyte, Inc. (Nasdaq: HUMA) and Oberland Capital Management LLC (Oberland Capital) today announced a $150 million, capped funding arrangement based on future revenues of Humacyte’s Human Acellular Vessel™ (HAV™), as well as a $10 million equity investment option. Funding provided to Humacyte under the arrangement includes:

 

  • $40 million upfront
  • $20 million upon U.S. Food and Drug Administration (FDA) acceptance of Humacyte’s planned BLA for use of the HAV in urgent arterial repair following extremity vascular trauma
  • $40 million upon FDA approval of the BLA for use of the HAV in vascular trauma
  • $50 million upon achievement of certain sales milestones

 

Humacyte has also granted an option for Oberland Capital to purchase up to $10 million in common stock priced at the greater of $7.50 per share or the market price per share.

 

“We are very pleased to enter into this funding arrangement with Oberland Capital that extends our cash runway and provides additional resources to support our development and commercialization initiatives, particularly as we move closer to our planned BLA filing,” said Dale Sander, Chief Financial Officer of Humacyte. “We are excited to partner with the team at Oberland Capital and appreciate their extensive experience in the life science industry.”

 

Michael Bloom, Partner at Oberland Capital added: “We are excited to enter into this revenue-based funding agreement with Humacyte as it prepares for the launch of its innovative HAV in urgent arterial repair following vascular trauma. We look forward to helping the company achieve its long-term objective of bringing this important product to market in multiple future vascular applications.”