Gemphire amends loan agreement with SVB to provide additional flexibility
On July 31, Gemphire amended its loan agreement with Silicon Valley Bank to provide additional flexibility to the Company. The original agreement established a term loan facility of up to $15m in aggregate principal amount to be funded in up to three tranches. The company received the first two tranches, $10M in aggregate, in July 2017.Among other provisions, the loan amendment with SVB: the date by which the FDA must lift the 6-month partial clinical hold from July 31 to September 30, 2019 for purposes of the requirement to provide cash security to SVB or prepayment of the loan, which could also be required if the Company's unrestricted cash balance falls below a minimum amount prior to such time.Extends the date that the third tranche of $5 million is available for draw down by the Company to November 30 should the conditions set forth in the amended loan agreement be met by such date. Extends the interest-only monthly payment period from August 1, 2018 to November 1, 2018, which may be subject to further extension if certain conditions set forth in the loan agreement are met.