Techniclone Signs Amendment to Its Equity Line of Credit

Techniclone Corp., a Tustin biopharmaceutical company, said Wednesday that it has signed an amendment to its equity line of credit to allow it to draw as much as $2.8 million a month, subject to minimum share prices.

The company said in a press release that under the amended terms, it may periodically sell its common shares until the remaining 9 million shares registered under the equity line have been exhausted.

The company said it has about a year of cash in the bank, and access to the additional capital would let it rapidly expand the clinical testing of its Cotara antibody product to treat brain cancer.

Techniclone said that at a price level of $4 a share, it could draw down more than $27 million. Its equity line had been set two years ago at $20 million.

Techniclone stock has been Orange County’s biggest percentage gainer this year, up 688% through Wednesday, when it lost 3 cents to close at $4.19 a share.