Agenus secures $22M mortgage, announces strategic realignment

Agenus (AGEN) secured a $22M non-amortizing mortgage backed by its Berkeley-based Biologics CMC facility and its 66-acre biomanufacturing-zoned property in Vacaville, California. Facilitated by L&L Capital, the transaction yields $20M in net proceeds after closing costs and interest reserve. The mortgage, structured with a two-year term, carries interest payable in a 50% cash and 50% common stock arrangement, with rates set at 12% for Year 1 and 13% for Year 2. Simultaneously, Agenus is executing a strategic operational realignment plan to sharpen its focus on botensilimab/balstilimab in MSS colorectal cancer, while driving significant cost reductions. Key components of the plan include: A projected 60% reduction in annual external expenditures. Transitioning Agenus’ CMC capabilities into a fee-for-service biologics manufacturing business. These measures, coupled with anticipated ongoing optimizations, are expected to lower the company’s FY25 cash burn to approximately $100M, pending the finalization of additional strategic transactions. BOT/BAL has exhibited exceptional clinical activity in MSS CRC and multiple other cancers resistant to existing therapies. Agenus is prepared to execute its late-stage development and regulatory strategy for MSS CRC, targeting both regional and global registration pathways. The compelling clinical data from BOT/BAL in neoadjuvant, front-line metastatic, and late-line MSS CRC underscores its transformative potential for patients with limited treatment options.