DURHAM – Humacyte has secured up to $150 million in new capital – including $40 million upfront – from Oberland Capital Management as the firm moves to commercialize bioengineered human tissue.
Humacyte (Nasdaq: HUMA) went public through a so-called “SPAC merger” in 2021. Its lead product focuses on blood vessels.
The deal involves the Human Acellular Vessel, or HAV, program and is based on potential revenues from that product.
The financing was announced early Friday after Humacyte disclosed a $37 million quarterly loss. Humacyte reported cash, cash equivalents and short-term investments of $131.7 million as of March 31. The deal with Oberland provides up to $160 million. The new funds and existing cash “are adequate to fund operations past the anticipated timelines for potential approval and commercialization of the HAV in vascular trauma,” Humacyte said.
“We are excited to enter into this revenue-based funding agreement with Humacyte as it prepares for the launch of its innovative HAV in urgent arterial repair following vascular trauma,” said Michael Bloom, partner at Oberland Capital, in a statement. “We look forward to helping the company achieve its long-term objective of bringing this important product to market in multiple future vascular applications.”
Humacyte will receive $40 million pending FDA approval for use of HAV in urgent arterial repair, the company said.
Another $40 million is available if the FDA approves HAV for use in vascular trauma.
And another $50 million is based on Humacyte reaching “certain milestones,” the company added.
Oberland also has the option to purchase $10 million in Hymacyte stock at a price greater than $7.50.
HUMA shares traded up at $4.58 in after-hours trading Thursday. It had closed the day at $4.24.
“We are very pleased to enter into this funding arrangement with Oberland Capital that extends our cash runway and provides additional resources to support our development and commercialization initiatives, particularly as we move closer to our planned BLA [biologic application license] filing,” said Dale Sander, Chief Financial Officer of Humacyte. “We are excited to partner with the team at Oberland Capital and appreciate their extensive experience in the life science industry.”