Verastem Announces $150M Debt Financing To Support VS-6766, Defactinib Development

Verastem Oncology Inc VSTM entered into a credit facility with Oxford Finance LLC for up to $150 million to primarily support the continued development, commercial preparation, and potential launches of VS-6766 and defactinib.

• Verastem drew an initial $25 million term loan at closing. The Company can access up to an additional $125 million in a series of tranches, $75 million of which are based on certain pre-determined milestones and $50 million at the lender's discretion. 
• Related: Truist Sees 350% Upside On This Cancer-Focused Biopharma Stock - Read Why.
• The Company had cash, cash equivalents, and an investment balance of $100.3 million. Considering the initial drawdown of $25.0 million at closing, the Company would have had a pro-forma cash balance of $125.3 million and an expected cash runway through 2025.
• The Company posted a Q4 FY21 EPS loss of $(0.08), down from (0.09) a year ago.
• Price Action: VSTM shares are up 8.82% at $1.30 during the market session on the last check Monday.