X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET

Company Participants

Dan Ferry - LifeSci Advisors, IR

Dr. Paula Ragan - Chief Executive Officer

Adam Mostafa - Chief Financial Officer

Art Taveras - Chief Scientific Officer

Diego Cadavid - Chief Medical Officer

Mary DiBiase - Chief Operating Officer

Conference Call Participants

Stephen Willey - Stifel

Eva Privitera - Cowen

Mayank Mamtani - B. Riley Securities

Arthur He - H.C. Wainwright

Operator

Greetings. And welcome to X4 Pharmaceuticals Second Quarter Financial and Operating Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded.

It is now my pleasure to introduce your host, Dan Ferry from LifeSci Advisors. Please begin.

Dan Ferry

Thank you, Operator, and good morning, everyone. Presenting on today’s call will be X4’s Chief Executive Officer, Dr. Paula Ragan; company’s Chief Financial Officer, Adam Mostafa. Following prepared remarks by each, we will open up the call to your questions and will be joined by Chief Scientific Officer, Art Taveras; Chief Medical Officer, Diego Cadavid; and Chief Operating Officer, Mary DiBiase.

As a reminder, on today’s call, the company will be making forward-looking statements regarding regulatory and product development plans, as well as research activities. These statements are subject to risks and uncertainties that may cause actual results to differ from those forecasted. A description of these risks can be found in X4’s most recent filings with the SEC, including this quarter’s 10-Q, which is expected to be filed after market close today.

I’d now like to turn the call over to X4’s President and CEO, Dr. Paula Ragan. Paula?

Dr. Paula Ragan

Thanks, Dan, and thank you, everyone, for joining us on the call this morning. As you have seen from our latest announcement, the past few months validated and enabled our focus here at X4. And as a result, we believe we are well positioned to deliver significant future value both to patients and to our shareholders, as we approach key milestones over the next six months to 12 months.

Most importantly, we completed a PIPE financing in late June in a highly challenging market condition, raising gross proceeds of approximately $56 million, with support from both new and existing top-tier life science investors.

At the same time, we entered into an amendment to our debt agreement with Hercules Capital, who also invested in the PIPE to extend the interest-only period of our loan facility by up to 12 months pushing it out into 2024. The amendment is subject to achieving certain financial and business milestones. We estimate this amendment loan structure could result in a cash savings of up to $20 million over the interest-only period.