SAN FRANCISCO – Olema Pharmaceuticals, Inc. (NASDAQ:OLMA) has amended its Loan and Security Agreement with Silicon Valley Bank, increasing its borrowing capacity from $50 million to $100 million, according to a recent 8-K filing with the Securities and Exchange Commission. The amendment, made on Thursday, also extends the loan's maturity date to July 1, 2028.
Under the new terms, $25 million is immediately accessible to Olema Pharmaceuticals, with an additional $25 million contingent upon reaching specific milestones related to a pivotal Phase 3 clinical trial of their drug candidate, palazestrant, in combination with ribociclib. The remaining $50 million is subject to the bank's approval. To date, no funds have been drawn under the initial Loan Agreement, which was established on September 5, 2023.
The expanded financial flexibility comes as Olema continues to advance its clinical programs. The funds are expected to support the company's development of palazestrant, a potential treatment for hormone receptor-positive breast cancer. The 8-K filing indicates that details of the amendment will be included in the company's Quarterly Report on Form 10-Q for the quarter ending June 30, 2024.
Olema Pharmaceuticals, headquartered at 780 Brannan Street in San Francisco, operates within the pharmaceutical preparations industry under the SIC code 2834. As a public entity, Olema is required to disclose material information, including financial agreements that could influence its operations and financial health.
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