aibioALX Oncology closes up to $50,000,000 HSBC term loan facility
Tickers ALXO
ALX Oncology borrowed $10,000,000 at closing from HSBC Ventures USA and used it to refinance its Oxford Finance and Silicon Valley Bank loan. The facility can reach $50,000,000, but $10,000,000 of that is uncommitted and the rest depends on draw dates and milestones.
Key facts
- Company
- ALX Oncology Holdings Inc. (NASDAQ: ALXO)
- News type
- Debt Financing
- Primary source
- ALX Oncology Holdings Inc. 8-K (2026-06-26)
ALX Oncology Holdings Inc. entered into a loan and security agreement on June 25, 2026 with HSBC Ventures USA Inc., as lender. The company's Form 8-K, dated June 25, 2026 and signed June 26, 2026 by Chief Financial Officer Harish Shantharam, names ALX Oncology Inc. as borrower and the holding company and ALX Oncology Limited as guarantors. The facility is a secured multi-tranche term loan of up to $50,000,000, of which $10,000,000 is uncommitted. The filing names no placement agent or financial advisor for the loan.
What the $10,000,000 paid off
The borrower took $10,000,000 of loans at closing. The 8-K says the proceeds refinanced the company's existing loan agreement, dated October 27, 2022, with Oxford Finance and Silicon Valley Bank, and paid closing fees and expenses. Item 1.02 of the 8-K says the payoff covered all principal, interest and other amounts owed under the Oxford agreement. The 8-K does not give the amount repaid or the fees.
What the company can still draw
An additional $20,000,000 is available to draw through June 30, 2028. A further $10,000,000 becomes available on milestones tied to two studies: positive data in the Phase 2 ASPEN-09 study of evorpacept, and positive safety data in the Phase 1 study of ALX2004. The company can also draw up to another $10,000,000 at the lender's sole discretion.
The milestone-linked $10,000,000 depends on study results that the 8-K does not give.
Terms of the term loans
The term loans mature on June 1, 2030. They amortize in equal monthly installments from July 1, 2028. If an interest-only milestone event occurs, as defined in the agreement, amortization starts on July 1, 2029 instead. The loans bear a floating rate equal to the greater of the prime rate and 6.0%, payable monthly in arrears.
The borrower must pay a prepayment fee of 2.0% of the outstanding principal for prepayments through the first anniversary of closing, and 1.0% for prepayments after that through the second anniversary. The fee is waived if the lender refinances the facility. A final payment fee of 2.00% of the original principal of funded term loans is due at maturity or on termination.
The loans are secured by substantially all assets of the borrower and guarantors, with a negative pledge on intellectual property. The company has agreed not to pledge that intellectual property to other lenders.
The agreement limits asset sales, debt, liens, dividends and investments. Events of default include payment defaults, covenant breaches, cross defaults and bankruptcy, and can lead to acceleration.
The science behind the milestones
The company's 10-K, filed March 9, 2026, calls ALX Oncology a clinical-stage biotechnology company. Its lead candidate, evorpacept, blocks CD47, a protein that cancer cells use to avoid immune attack. The company is testing it with trastuzumab and chemotherapy in metastatic HER2-positive breast cancer in the Phase 2 ASPEN-09-Breast trial. The second clinical candidate, ALX2004, is an antibody drug conjugate that targets EGFR.
The company calls evorpacept a potential cornerstone therapy and says clinical data so far show none of the dose-dependent blood toxicities seen with other CD47 blockers. Those are company claims, and the 10-K's business section gives no efficacy results. It also says earlier CD47 approaches have had limited efficacy in solid tumors. ALX2004 entered a Phase 1 trial only in August 2025.
Losses and cash use
Research and development expense fell to $77.0 million in 2025 from $116.4 million in 2024. The net loss narrowed to $101.7 million from $134.8 million. Cash used in operations was $84.1 million in 2025, down from $121.9 million in 2024.
At the end of 2024 the company held $17.6 million in cash and cash equivalents and $110.2 million in short-term investments. The 8-K gives no cash balance, so the new loan cannot be set against cash on hand.
What comes next
The $20,000,000 that remains available must be drawn by June 30, 2028, and the full agreement is to be filed with the company's Form 10-Q for the quarter ended June 30, 2026.