Andrew Allen, Gritstone bio CEO (Gritstone via website)

Up­dat­ed: Grit­stone goes the cred­it fa­cil­i­ty route, se­cur­ing $80M to keep clin­i­cal ef­forts run­ning

A Cal­i­for­nia de­vel­op­er is fol­low­ing up on one of the hottest trends in biotech, tak­ing out a loan to ex­tend its op­er­at­ing run­way while the biotech sec­tor takes a beat­ing on Nas­daq.

Vac­cine out­fit Grit­stone bio put out word Thurs­day that it en­tered in­to an $80 mil­lion cred­it fa­cil­i­ty with Her­cules Cap­i­tal and Sil­i­con Val­ley Bank. The fa­cil­i­ty, a type of loan, breaks down in the fol­low­ing: $20 mil­lion drawn by Grit­stone at clos­ing, with an­oth­er $10 mil­lion avail­able to with­draw by March 15, 2023. The re­main­ing $50 mil­lion will be­come avail­able in tranch­es through June 15, 2024 as Grit­stone achieves cer­tain, un­spec­i­fied mile­stones.

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