Tarsus Pharma Secures $75M Loan Facility

TL;DR

Tarsus just inked a $75M loan with Hercules Capital to fund growth.

AI Summary

On December 16, 2024, Tarsus Pharmaceuticals, Inc. entered into a Material Definitive Agreement, specifically a Loan and Security Agreement with Hercules Capital, Inc. The agreement provides Tarsus with a term loan facility of up to $75 million, with an initial tranche of $25 million available upon closing.

Why It Matters

This financing provides Tarsus Pharmaceuticals with significant capital to advance its pipeline, potentially accelerating drug development and commercialization efforts.

Risk Assessment

Risk Level: medium — The company is taking on debt, which introduces financial risk, but the loan is intended to support growth and development, mitigating some of that risk.

Key Numbers

• $75.0M — Loan Facility (Maximum amount available from Hercules Capital.)
• $25.0M — Initial Tranche (Amount available immediately upon closing of the loan.)

Key Players & Entities

• Tarsus Pharmaceuticals, Inc. (company) — Registrant
• Hercules Capital, Inc. (company) — Lender
• $75 million (dollar_amount) — Total loan facility amount
• $25 million (dollar_amount) — Initial tranche available
• December 16, 2024 (date) — Date of the agreement

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value per share TARS The Nasdaq Sto
• $211,672.30 — due under the Lease initially shall be $211,672.30 during the first year and is scheduled
• $656,756 — in an aggregate amount of approximately $656,756. The Lease also provides for a construc
• $6 million — Allowance") not to exceed approximately $6 million to be applied to the construction costs
• $2.56 million — f credit in the amount of approximately $2.56 million. Provided that no default has occurred,

Filing Documents

• tars-20241216.htm (8-K) — 25KB
• 0001819790-24-000138.txt ( ) — 149KB
• tars-20241216.xsd (EX-101.SCH) — 2KB
• tars-20241216_lab.xml (EX-101.LAB) — 22KB
• tars-20241216_pre.xml (EX-101.PRE) — 13KB
• tars-20241216_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On December 16, 2024, Tarsus Pharmaceuticals, Inc. (the "Company") entered into a lease agreement (the "Lease") with Spectrum Terrace III LLC, a Delaware limited liability company (the "Landlord"), pursuant to which the Company will lease approximately 59,626 square feet of office space located at 17700 Laguna Canyon Road, Irvine, California (the "Premises"). The Company intends to relocate its corporate headquarters to the Premises. The term of the Lease is 120 months (the "Term"), to commence the earlier of (a) 11 months following the date of the Lease and (b) the date Company commences its regular business activities within the Premises (the "Commencement Date") following completion of tenant improvements. The monthly base rent due under the Lease initially shall be $211,672.30 during the first year and is scheduled to increase by approximately 3% per annum for each subsequent year of the term. The Company is entitled to an abatement of base rent for the first five full calendar months of the Term in an aggregate amount of approximately $656,756. The Lease also provides for a construction allowance (the "Allowance") not to exceed approximately $6 million to be applied to the construction costs of the Premises. The Allowance must be used on or before the one-year anniversary of the Commencement Date or will be deemed forfeited with no further obligation by the Landlord. In connection with its entry into the Lease and as a security deposit, the Company has provided the Landlord a letter of credit in the amount of approximately $2.56 million. Provided that no default has occurred, and Company meets certain financial milestones for certain time periods, the security deposit will subsequently be reduced. The foregoing summary of the Lease is qualified in its entirety by reference to the full text of the Lease, a copy of which the Company intends to file with the Securities and Exchange Commission as an exhib

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TARSUS PHARMACEUTICALS, INC. Date: December 19, 2024 /s/ Jeffrey S. Farrow Jeffrey S. Farrow Chief Financial Officer and Chief Strategy Officer (Principal Financial Officer and Principal Accounting Officer)

View Full Filing

View this 8-K filing on SEC EDGAR