Spruce Biosciences, Inc. (NASDAQ: SPRB) shares began Thursday lower in price. The company, a late-stage biopharmaceutical firm focused on developing and commercializing novel therapies for neurological disorders with significant unmet medical need, today announced that, on Wednesday, it entered into a loan facility with Avenue Venture Opportunities Fund II, L.P., a fund of Avenue Capital Group (Avenue Capital), for up to $50 million in growth capital.
The loan facility has a 42-month term and includes an initial tranche of $15 million, which will be fully funded on or around January 9, 2026, and three additional tranches totaling up to $35 million, the funding of which is subject to the satisfaction of certain terms and conditions of the loan and security agreement, including the achievement of key regulatory and commercial milestones related to the company’s development and planned commercial launch oftralesinidase alfa enzyme replacement therapy (TA-ERT) for the treatment of Sanfillipo Syndrome Type B (MPS IIIB).
“We are pleased to partner with Avenue Capital on a strategic financing agreement with attractive terms that strengthens our financial flexibility,” said CEO Samir Gharib. “At the drawdown of the initial $15 million tranche, we expect our cash and cash equivalents to fund planned operations into 2027, supporting the biologics license application (BLA) filing of TA-ERT for the treatment of MPS IIIB, while also accelerating pre-launch commercial activities.”
SPRB shares fell 59 cents to $77.50.
