CAMBRIDGE, Mass., July 25, 2019 (GLOBE NEWSWIRE) -- Evelo Biosciences, Inc. (Nasdaq: EVLO), a biotechnology company developing oral biologics that act on cells in the small intestine with systemic therapeutic effects, today announced that it has entered into a loan and security agreement for up to $45 million with K2 HealthVentures (K2HV), a healthcare investment firm.
“We are pleased to announce this agreement, which increases our financial flexibility as we advance our clinical portfolio of oral biologics in inflammation and oncology,” said Jonathan Poole, chief financial officer of Evelo. “Throughout their investment process and collaboration with us in structuring this transaction, the K2HV team has demonstrated a deep understanding of Evelo and our novel technology platform.”
Upon closing, Evelo borrowed $20 million; the funds were used to fully repay the Company’s previous $15 million loan facility and will be used for general corporate and working capital purposes, which includes funding the advancement of the Company’s pipeline.
“We are excited to work with Evelo in support of the company’s vision of harnessing its novel oral biologics platform to develop safe and affordable medicines across a variety of chronic diseases and cancer,” said Parag Shah, founding managing director & chief executive officer of K2 HealthVentures. “This flexible and customized financing is aligned with our strategy of partnering with innovative private and public companies in the life sciences and healthcare industries.”
About Evelo Biosciences
Evelo Biosciences, Inc. is a clinical stage biotechnology company developing oral biologics that act on cells in the small intestine with systemic therapeutic effects. These cells in the small intestine play a central role in governing the immune, metabolic and neurological systems. The company’s first product candidates are monoclonal microbials, single strains of microbes selected for defined pharmacological properties. They have systemic dose-dependent effects, modulating multiple clinically validated pathways. Evelo’s therapies have the potential to be effective, safe and affordable medicines to improve the lives of people with chronic disease and cancer.
Evelo currently has three product candidates, EDP1066 and EDP1815 for the treatment of inflammatory diseases and EDP1503 for the treatment of cancer, for which ten clinical readouts are expected during 2019 and 2020. Evelo is also advancing additional oral biologics through preclinical development in other disease areas.
For more information, please visit www.evelobio.com.
About K2 HealthVentures
K2 HealthVentures is an alternative investment firm focused on providing flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare industries. The investment team is comprised of collaborative, experienced professionals with diverse backgrounds in finance and operations, as well as deep domain knowledge across various healthcare sectors. A uniquely flexible, permanent capital structure enables the firm to provide creative, adaptive financing solutions and meet the evolving capital needs of its portfolio companies as they grow. K2HV is driven by dual goals of Profit and Purpose – aiming to fuel the growth of innovative companies that will ultimately improve the lives of patients and giving a percentage of investment profits back to underserved areas in healthcare. www.k2hv.com
