Kane Biotech (KNE) has entered into a one-year credit facility agreement with Pivot Financial.
The company’s agreement is for a non-revolving term loan, worth an aggregate C$1.48 million. In connection with the facility, Kane Biotech has also entered into a general security agreement, in favour of Pivot.
The company will use the facility proceeds to fund research and development relating to eligible government reimbursable expenditures. Some funds will also go towards expenses related to Kane Biotech’s subsidiary, STEM Animal Health Inc, and general working capital purposes.
Kane Biotech’s Chief Financial Officer, Ray Dupuis, commented on the timeliness of the company’s newly secured credit facility.
“This non-dilutive credit facility has been secured at an opportune time for Kane Biotech as it enters manufacturing, animal study and human study phases of its DispersinB wound care program in the coming months.
“These phases of work will require significant cash outlays prior to funding being subsequently received from existing Western Economic Diversification Canada Business Scale-Up and Productivity and US Department of Defense Medical Technology Enterprise Consortium Research Project Award funding programs,” he said.
Pivot Financial’s President, Dan Flario, also commented on the company’s new credit facility agreement.
“We’re pleased to welcome Kane to our family of clients and look forward to working with the management team as they continue to commercialise their impressive “made in Canada” portfolio of intellectual property,” he said.
Kane Biotech (KNE) is up 3.57 per cent, and trading for $0.14 per share, as of 9:39am EST.