Abeona Therapeutics lowers loan interest rate and issues warrants in loan amendment

Published 18/07/2025, 21:28
Abeona Therapeutics lowers loan interest rate and issues warrants in loan amendment

Abeona Therapeutics Inc. (NASDAQ:ABEO) announced Friday that it has amended its existing Loan and Security Agreement with Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P. The amendment reduces the interest rate on the company’s senior secured term loan from 13.5% to a fixed rate of 11.75% per annum.

As part of the amendment, Abeona issued warrants to Avenue and Avenue 2 to purchase up to a total of 16,474 shares of Abeona common stock. The warrants have an exercise price of $6.07 per share and will expire on July 18, 2030. The warrants may be exercised at any time before expiration by paying the exercise price in cash or on a cashless basis according to a specified formula. The warrant price sits below the current trading price of $6.59, with the stock trading near its 52-week high of $7.32. Get deeper insights into Abeona’s financial health metrics and 12 additional ProTips with InvestingPro.

If there is a change of control in which the per-share price of Abeona’s common stock is less than or equal to twice the exercise price, the warrant holders would be entitled to receive the underlying shares without payment of the exercise price. The warrants also include anti-dilution provisions for stock dividends, stock splits, and reverse stock splits.

The amendment was entered into by Abeona and its subsidiaries, MacroChem Corporation and Abeona Therapeutics LLC. The information is based on a press release statement contained in a filing with the U.S. Securities and Exchange Commission.

In other recent news, Abeona Therapeutics has been active on several fronts. The company recently completed the sale of its Rare Pediatric Disease Priority Review Voucher for $155 million, bolstering its financial position with approximately $225 million in cash and investments as of June 30, 2025. This financial boost ensures over two years of operating capital, according to Abeona’s CFO, Joe Vazzano. Abeona has also received FDA approval for ZEVASKYN, a cell-based gene therapy for recessive dystrophic epidermolysis bullosa, with the first patient treatments expected in the third quarter of 2025.

Additionally, Beacon Therapeutics has licensed Abeona’s AAV204 capsid for potential gene therapies targeting retinal diseases, providing Abeona with upfront and milestone payments, as well as royalties on future sales. Analyst coverage from Oppenheimer has been positive, with the firm assuming coverage of Abeona Therapeutics with an Outperform rating and a price target of $19, citing strong early momentum following ZEVASKYN’s approval. H.C. Wainwright also maintains a Buy rating on Abeona, despite a recent FDA Complete Response Letter requesting additional information for another gene therapy treatment.

Bio-Techne (NASDAQ:TECH) Corporation’s technology played a role in the FDA approval of ZEVASKYN, highlighting the collaborative efforts in advancing gene therapies. These recent developments underscore Abeona Therapeutics’ active engagement in advancing its gene therapy portfolio and strengthening its market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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