Agenus (AGEN) said Wednesday it has secured a $22 million mortgage backed by two California properties and is implementing an operational realignment plan to enhance its focus on botensilimab/balstilimab in microsatellite stable colorectal cancer while lowering costs.
The mortgage yields net proceeds of $20 million and boosts the company's cash position ahead of more cash infusions anticipated in the coming months. The interest on the two-year term mortgage will be paid in a 50% cash and 50% common stock arrangement, with rates set at 12% for the first year and 13% for the next, the company said.
Meanwhile, the operational realignment plan includes an estimated 60% cut in annual external expenditures and transitioning its chemistry, manufacturing and controls capabilities into a fee-for-service biologics manufacturing business, the company said.
Agenus said these measures are expected to help reduce its 2025 cash burn to about $100 million, pending the finalization of additional transactions.
The company's shares jumped more than 19% in recent Wednesday trading.
Price: 4.03, Change: +0.65, Percent Change: +19.23
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