Rani Therapeutics completes $45 million loan agreement to support continued advancement of the RaniPill® platform and clinical pipeline development
Extends Rani’s projected cash trail to mid-2024
SAN JOSE, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) — Rani Therapeutics Holdings, Inc. (“Rani Therapeutics” or “Rani”) (Nasdaq: RANI), a clinical-stage biotherapeutics company focused on the oral delivery of biologics, today announced that it has entered into a loan agreement with Avenue Venture Opportunities Fund, LP (“Avenue”) for up to $45 million in funding. This funding is expected to support the continued advancement of the RaniPill platform and the ongoing clinical development of the Company’s drug pipeline.
“We are pleased to secure this additional capital, which strengthens our financial position and balances our short-term capital needs to support the continued advancement of the RaniPill platform, including the RaniPill HC (high capacity) device, and the development of our pipeline, extending our cash trail to mid-2024,” said Svai Sanford, CFO of Rani Therapeutics. “Looking ahead to the remainder of the year, Rani plans to announce breakthrough Phase 1 data for RT-102 – the RaniPill capsule containing our proprietary formulation of parathyroid hormone PTH (1-34) for the treatment osteoporosis – as well as to initiate an additional phase 1 clinical study.
Under the loan agreement, Rani will receive $15 million of the initial tranche of $30 million at closing, with the remaining $15 million available to be drawn down at the company’s discretion in the fourth quarter of 2022. Rani has the right to request an additional $15 million in funds in the future if certain conditions and milestones are met. The loan bears interest only over a period of 24 months (extendable to 30 months if certain conditions are met) and the principal is repayable in equal monthly installments over the remaining period of the total term of 48 months. The loan bears interest at a variable rate equal to the greater of (A) prime rate plus 5.6% and (B) 10.35%. Avenue will receive a warrant to purchase common shares of the Company.
Rani Therapeutics is a clinical-stage biotherapeutics company focused on advancing technologies to enable the development of orally administered biologics. Rani has developed RaniPill capsules, which are a new, proprietary and patented platform technology intended to replace subcutaneous injection or intravenous infusion of biological products with oral administration. Rani has successfully conducted several preclinical and clinical studies to evaluate the safety, tolerability and bioavailability of RaniPill capsules.
For more information, visit www.ranitherapeutics.com.
Statements in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, the timing the results of Rani’s Phase 1 trial of RT-102, the planned initiation of an additional Phase 1 trial of another product candidate in the second half of 2022, expected progress with the RaniPill HC platform , Rani’s development and advancement of its RaniPill capsule technology, including RaniPill HC, advancement of its preclinical and clinical programs and timing of results, Rani’s future capital requirements, Rani’s liquidity adequacy to fund future operations until a specified date, the strength of Rani’s financial position to fund the advancement of its technology platform and the development clinical development of its pipeline, the availability of future funding under the loan agreement with Avenue Capital Group and the growth of Rani as a business. Because these statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. Words such as “may”, “expect”, “could”, “anticipate”, “project”, “progress”, “go forward” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on Rani’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements due to various risks and uncertainties, which include, but are not limited to, risks and uncertainties associated with Rani’s business generally, the impact of the COVID pandemic -19 and the other risks described in Rani’s filings and periodic reports filed with the Securities and Exchange Commission under “Risk Factors” and elsewhere in such documents and reports, including Rani’s annual report on Form 10-K for the fiscal year ended December 31, 2021 and Rani’s subsequent quarterly filings and reports. All forward-looking statements contained in this press release speak only as of the date they were made and are based on management’s assumptions and estimates as of that date. Rani undertakes no obligation to update these statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.