The US Bankruptcy Court gave an order to Humanigen, Inc. to obtain DIP financing on an interim basis on January 3, 2024. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $1 million out of total facility of $2 million from Taran Therapeutics, Inc. The DIP loan would carry an interest rate 5% p.a., along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries an exit fee of 5%.

Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The final hearing is scheduled on February 1, 2024.