01:33 PM EDT, 10/03/2024 (MT Newswires) -- 89bio (ETNB) said Thursday it negotiated with lenders a $50 million increase in its borrowing capacity.

The biotechnology company said in a regulatory filing with the Securities and Exchange Commission that its lenders amended an existing term loan agreement to $150 million from $100 million. The term loan is set to expire on Oct. 1, 2028.

89bio received $35 million at closing, and will have an additional $35 million available through June 30, 2025.

A second tranche of $30 million will be funded once a certain, time-based clinical milestone is met, while a further $50 million will be made available subject to lenders' due diligence, the company said.

As part of the agreement, 89bio also issued 406,951 warrants to K2 HealthVentures exercisable at $7.3719 each.

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