Turn Therapeutics Inc. entered into a Loan and Security Agreement on March 23, 2026, providing up to $25 million in term loans from Avenue Venture Opportunities Fund II, L.P., with $7 million funded initially and additional tranches subject to clinical and financing milestones. The company issued $1.2 million in common stock as an equity grant and granted conversion and participation rights, extending its cash runway through key clinical readouts.
Key takeaways
Entered Loan and Security Agreement dated March 23, 2026, with Avenue Venture Opportunities Fund II, L.P. as Agent and Lender.
Tranche 1: $7.0 million funded within one business day of closing.
Tranche 2: up to $8.0 million available September 1, 2026 to March 31, 2027, subject to clinical and financing milestones.
Discretionary Tranche 3: up to $10.0 million from January 1, 2027 to June 30, 2028, subject to milestones and lender approval.
Loans bear interest at greater of 5.50% + prime rate or 12.25%, mature October 1, 2029, secured by all assets.
Issued Equity Grant of common stock valued at $1.2 million based on 5-day VWAP pre-closing to Lender.