Tevogen Bio Secures Up to $50 Million for Operational Goals

Tevogen Bio Holdings Inc. (Nasdaq: TVGN), a clinical-stage biotechnology firm specializing in immunotherapy, has announced a significant financial boost through a binding term sheet with an existing investor. This agreement secures up to $50 million to fund Tevogen's ongoing research and development efforts, particularly focusing on the clinical advancement of its flagship product, TVGN 489, derived from its ExacTcell™ technology platform.

In January 2023, Tevogen Bio reported positive proof-of-concept clinical trial results for TVGN 489, targeting high-risk patients. The new financing will support the expansion of these efforts and initiate further clinical trials for conditions such as virally induced cancers and multiple sclerosis. Dr. Ryan Saadi, Founder and CEO of Tevogen Bio, expressed gratitude for the backing from existing shareholders, emphasizing that the funding will facilitate the company's goals of providing cost-effective and accessible T cell therapies to large patient populations.

The financing package includes a $36 million line of credit and $14 million in a private placement at a 30% discount to a future 10-day volume-weighted average price, contingent on the share price reaching $10. Tevogen Bio can draw $1 million per month from the line of credit at an interest rate of either the daily SOFR plus 2.0% or 7.0%, whichever is lower. Interest will accrue quarterly and be payable in common stock. The line of credit spans 36 months, with each draw maturing four years post-draw. The private placement can cover any remaining undrawn amounts from the line of credit.

Dr. Manmohan Patel, MD, representing the investor group involved in the transaction, highlighted their strong belief in Tevogen's leadership and innovative technology. He noted that the company's efficient business model and potential for commercial success made this investment attractive. The funding is expected to close by the end of the second quarter of 2024, pending the finalization of definitive documents.

Tevogen Bio is dedicated to harnessing CD8+ cytotoxic T lymphocytes, one of nature's most potent immunological defenses, to develop off-the-shelf, genetically unmodified T cell therapies for a range of diseases, including infectious diseases, cancers, and neurological disorders. The company aims to meet the substantial unmet medical needs of large patient populations.

Tevogen's leadership is committed to sustainable and commercially successful healthcare solutions that prioritize patient accessibility through advanced scientific methods and innovative business strategies. The company boasts positive safety data from its proof-of-concept clinical trials and holds key intellectual property assets, including three granted patents and twelve pending patents, with two involving artificial intelligence. These assets are entirely owned by Tevogen without any third-party licensing agreements.

The company's management team consists of seasoned industry leaders and distinguished scientists with extensive experience in drug development and global product launches. They believe that the future of medicine lies in accessible personalized therapeutics and that innovative business models are crucial to sustaining medical advancements.