Public biotech company VIA Pharmaceuticals secured a loan of up to $10 million from Bay City Capital to fuel further development of its lead drug candidate for cardiovascular disease, reports VentureWire. Bay City was the company’s only backer before it went public in 2007.
Based in San Francisco, the company makes a pill that reduces the inflammation of blood vessels that leads to heart attacks or strokes. It is currently in phase-two clinical trials. VIA has already received $2 million of the loan from the firm and has the option to request the remaining $8 million.
The pharmaceuticals company must repay Bay City by Sept. 14 with 15 percent interest. If it brings in more than $20 million, it must repay the principal sooner. Also, as part of the deal, Bay City received warrants to buy 83.3 million shares of common stock in VIA at 12 cents per share. VIA closed at 14 cents a share on Thursday.