Fremont, CA-based ARYx Therapeutics has secured a $6.3 million loan from several existing investors. The first loan gives the company up to $4 million, while an amended agreement with Lighthouse Capital Partners allows approximately $2.3 million of required payments to Lighthouse to be deferred and extended as a new loan commitment to ARYx. The company says that the proceeds from the financing should allow it to perate through the end of 2010.
Back in February, ARYx saw licensing discussions for its antiarrythmia drug budiodarone collapse. That caused the developer to cut its staff to a bare minimum. It also brought in Cowen and Company to explore strategic options. The developer hopes that the loan will give it time to execute a transaction for the drug.
"The securing of this bridge financing is significant to ARYx since it now gives us the time to complete a strategic transaction that, if finalized, could realize real value from our product portfolio. The participation of our existing investors in the bridge loan financing follows their conducting significant due diligence on the company and our progress to date towards a potential transaction. Therefore, we believe this financing is a vote of confidence by important current investors," says ARYx CEO Paul Goddard in a statement.
- here's Aryx's release