Molecular Templates, a clinical-stage biopharmaceutical company focused on developing targeted biologic therapeutics for cancer, has announced a restructuring agreement with K2 HealthVentures to fully discharge and satisfy outstanding debt obligations. The agreement also includes the granting of contingent value rights and warrants. Molecular Templates will reduce its current workforce by approximately 44% as it continues exploring strategic alternatives.
The restructuring plan includes paying down $27.5 million of the senior secured debt obligation with K2HV, while the remaining balance of around $10 million will be converted into a security instrument that will be paid back upon the occurrence of certain specified events or alternatively, MTEM may elect to pay off the balance in part or in full. In connection with the evaluation of strategic alternatives and in order to extend its resources to better position the organization, Molecular Templates today implemented a restructuring plan that includes reducing its current workforce by approximately 44%.
The announcement by Molecular Templates regarding their restructuring agreement with K2 HealthVentures is an important step towards debt payoff and restructuring which are significant keywords for this article. Other essential keywords include workforce reduction, K2