Technology-based pharmaceutical company Verseon announced on Wednesday that its wholly-owned subsidiary, VRH1, has closed a $22.7m financing with MCREIF SubREIT, secured on its custom-built research, development, and operations facility in Fremont, California.
The AIM-traded firm said that of the total amount of the financing, $21.7m had been received on closing, with an additional $1m available to be drawn at a future date for facilities-related expenses.

It is an interest-only mortgage facility, which carried an annual interest rate of 8% and would be repayable after 24 months, with an option to extend for up to a further 12 months.

The documentation entered into in relation to the financing contained customary financial covenants, the board explained, and was based on a loan-to-value of around 50%.

Verseon said the proceeds would be used for its drug programmes and operations.

"The financing leverages Verseon's strong balance sheet and realises a portion of the value created through the acquisition and development of the company's facility in Fremont to free up operating cash while allowing the company to retain ownership of its assets," the board explained in its statement.

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