Benzinga | Jul 13, 2021 08:03AM EDT

ASLAN Pharma Secures Debt Funding Of $45M To Support ASLAN003 Development

* ASLAN Pharmaceuticals (NASDAQ:ASLN) has closed a secured loan facility provided by K2 HealthVentures (K2HV).

* Under the terms of the facility, K2HV will provide ASLAN up to $45 million of secured debt financing consisting of a $20 million initial term loan funded at closing, with the remaining $25 million subject to specific terms and conditions.

* Proceeds will be used to advance the clinical development of ASLAN003 in autoimmune gastrointestinal and skin diseases and general corporate purposes.

* ASLAN expects to initiate a Phase 2 clinical trial for ASLAN003 in inflammatory bowel disease in early 2022.

* Price Action: ASLN shares are down 0.32% at 3.11 during the premarket session on the last check Tuesday.