Mereo BioPharma Group said it has drawn down the second and final £10m tranche of a credit facility set up in August with Silicon Valley Bank and Kreos Capital.
Along with its existing cash holdings, the company said the drawdown would provide it with a strong balance sheet, with sufficient cash resources to fund its key clinical programmes.
The terms were as previously disclosed and "typical for facilities of this type", the company said.
In connection with the drawdown, it issued warrants giving the lenders the right to subscribe for 333,334 shares at a price of 330 pence per share, currently equivalent to around 0.5% of the company.
The warrants would be capable of exercise until August 21, 2027.
At 8:24am: (LON:MPH) Mereo Biopharma Group Ltd share price was 0p at 325p