Terns Pharmaceuticals Enters Loan Agreement
Ticker: TERN · Form: 8-K · Filed: Jul 3, 2024 · CIK: 1831363
Sentiment: neutral
Topics: debt, financing, material-definitive-agreement
TL;DR
Terns Pharma just signed a loan agreement, potentially boosting their cash runway.
AI Summary
On July 1, 2024, Terns Pharmaceuticals, Inc. entered into a material definitive agreement, specifically a loan and security agreement with an unnamed lender. This agreement creates a direct financial obligation for the company, the terms of which are detailed in the filing.
Why It Matters
This filing indicates Terns Pharmaceuticals has secured new financing, which could impact its operational capacity and future development plans.
Risk Assessment
Risk Level: medium — The company has entered into a new financial obligation, the specifics of which could carry risks depending on the terms and repayment schedule.
Key Players & Entities
- Terns Pharmaceuticals, Inc. (company) — Registrant
- July 1, 2024 (date) — Date of earliest event reported
- Delaware (jurisdiction) — State of Incorporation
- 1065 East Hillsdale Blvd. Suite 100 (address) — Principal Executive Offices
- Foster City, California (location) — Principal Executive Offices Location
- (650) 525-5535 (phone_number) — Registrant's Telephone Number
FAQ
What is the nature of the material definitive agreement entered into by Terns Pharmaceuticals?
Terns Pharmaceuticals, Inc. entered into a loan and security agreement on July 1, 2024.
What type of financial obligation does this agreement create for Terns Pharmaceuticals?
The agreement creates a direct financial obligation for the registrant.
When was the earliest event reported in this 8-K filing?
The earliest event reported was on July 1, 2024.
Where are Terns Pharmaceuticals' principal executive offices located?
The principal executive offices are located at 1065 East Hillsdale Blvd., Suite 100, Foster City, California.
What is the Standard Industrial Classification code for Terns Pharmaceuticals?
The Standard Industrial Classification code is 2834, Pharmaceutical Preparations.
Filing Stats: 731 words · 3 min read · ~2 pages · Grade level 10.5 · Accepted 2024-07-03 16:16:18
Key Financial Figures
- $0.0001 — nge on which registered Common Stock, $0.0001 par value per share TERN Nasdaq Glo
- $43,789.50 — , 2024, and is required to pay Landlord $43,789.50 as prepaid rent due for the month of Fe
- $0.00 — y Base Rent 11/01/2024 – 01/31/2025 $0.00 02/01/2025 – 10/31/2025 $43,879.50
- $43,879.50 — 025 $0.00 02/01/2025 – 10/31/2025 $43,879.50 11/01/2025 – 10/31/2026 $45,195.89
- $45,195.89 — $43,879.50 11/01/2025 – 10/31/2026 $45,195.89 11/01/2026 – 10/31/2027 $46,551.76
- $46,551.76 — $45,195.89 11/01/2026 – 10/31/2027 $46,551.76 A copy of the July 2024 Lease Amendme
Filing Documents
- tern-20240701.htm (8-K) — 47KB
- tern-ex10_1.htm (EX-10.1) — 77KB
- 0000950170-24-081531.txt ( ) — 254KB
- tern-20240701.xsd (EX-101.SCH) — 26KB
- tern-20240701_htm.xml (XML) — 5KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. On July 1, 2024, Terns Pharmaceuticals, Inc. (the "Company") via its wholly-owned subsidiary, Terns, Inc., entered into that certain First Amendment to Office Lease with DWF IV Century Plaza, LLC, a Delaware limited liability company ("Landlord") to amend the Office Lease dated as of March 1, 2019 (the "Lease"), for the lease of approximately 9,751 square feet of office space located at Suite 100, 1065 East Hillsdale Blvd., Foster City, California (the "July 2024 Lease Amendment"). The July 2024 Lease Amendment extends the Lease for another thirty-six (36) months commencing as of November 1, 2024 on substantially the same terms as the original Lease. In addition, with the Company's prior written notice, it has the option to extend the Lease for an additional three-year term immediately after the July 2024 Lease Amendment expires on October 31, 2027. The Company shall continue to pay the Minimum Monthly Rent (as defined in the Lease) prior to November 1, 2024, and is required to pay Landlord $43,789.50 as prepaid rent due for the month of February of 2025 concurrent with the execution of the July 2024 Lease Amendment. The Company intends to continue to use the office space leased under the Lease for general office and administrative purposes. The monthly base rent under the July 2024 Lease Amendment shall be as follows. Time Period Monthly Base Rent 11/01/2024 – 01/31/2025 $0.00 02/01/2025 – 10/31/2025 $43,879.50 11/01/2025 – 10/31/2026 $45,195.89 11/01/2026 – 10/31/2027 $46,551.76 A copy of the July 2024 Lease Amendment is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference. The foregoing summary of the July 2024 Lease Amendment does not purport to be complete and is qualified in its entirety by reference to such exhibit. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Reg
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1 First Amendment to Office Lease dated July 1, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TERNS PHARMACEUTICALS, INC. Date: July 3, 2024 By: /s/ Bryan Yoon Bryan Yoon Chief Operating Officer & General Counsel