UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 2.03. | Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant. |
On May 14, 2021, Molecular Templates, Inc. (the “Company”) through Molecular Templates OpCo, Inc., as borrower, drew down an additional $20 million (the “Second Tranche”) pursuant to its previously disclosed Loan and Security Agreement with K2 HealthVentures LLC, as administrative agent for Lenders, the lenders from time to time party thereto, and Ankura Trust Company, LLC, as collateral agent for Lenders, dated May 21, 2020 (the “K2 Loan and Security Agreement”). The K2 Loan and Security Agreement consists of a total potential borrowing capacity of $45 million, drawable in three tranches subject to the satisfaction of the terms and conditions therein. The first tranche of $15 million was drawn at the initial closing on May 21, 2020. The Second Tranche consists of $20 million, and was drawable between March 1, 2021 and June 30, 2021, at the Company’s option, subject to the achievement of certain clinical milestones. The Company has achieved these milestones and has drawn the Second Tranche. Pursuant to the terms of the K2 Loan and Security Agreement, the principal accrues interest at an annual rate equal to the greater of 8.45% or the sum of the Prime Rate plus 5.2%. Monthly payments commenced on July 1, 2020 and payments will be interest only until July 1, 2023. Thereafter, the loan shall amortize monthly such that the principal amount of the loan and interest accrued thereon shall be fully amortized by the loan’s maturity date of June 1, 2024.
The description of the K2 Loan and Security Agreement in Item 1.01 of the Company’s Current Report on Form 8-K filed on May 22, 2020 is incorporated herein by reference. The foregoing description of the K2 Loan and Security Agreement does not purport to be complete and is qualified in its entirety by reference to the K2 Loan and Security Agreement, which is filed as an exhibit to the Company’s Current Report on Form 8-K filed on May 22, 2020.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Molecular Templates, Inc. | ||||||
| Dated: May 17, 2021 | ||||||
| By: | /s/ Eric E. Poma, Ph.D. | |||||
| Name: | Eric E. Poma, Ph.D. | |||||
| Title: | Chief Executive Officer | |||||