CAPRICOR THERAPEUTICS, INC. 8-K

Summary

New San Diego headquarters and manufacturing lease. Capricor will lease approximately 171,000 rentable square feet for expanded cleanrooms, research and development laboratories, and offices. The lease is tied to FDA approval of Deramiocel for Duchenne muscular dystrophy.

Key Figures

• Premises: approximately 171,000 rentable square feet; initial base rent $5.60 per square foot monthly, or ≈$0.958M per month, with annual increases of 3.0%.
• Rent: 18 months of full base-rent abatement, followed by six months of partial abatement, with rent charged on 128,068 square feet; thereafter, rent applies to the full premises.
• Term and costs: estimated lease commencement is the earlier of satisfaction or waiver of the FDA-approval contingency or 12/31/2026. Rent starts 12 months later; the lease ends 138 months from the first day of the first full month after rent commencement. Capricor must provide a ≈$0.958M cash or letter-of-credit security deposit and pay property taxes, insurance, maintenance, and operating costs. The landlord will provide a tenant improvement allowance.

Investor Takeaways

• FDA approval of Deramiocel by 12/31/2026 determines whether the lease contingency is satisfied; if approval is not received by then, either party may terminate by giving written notice within five business days.
• Watch for the lease commencement and rent commencement dates, which determine when the term and rent obligations begin.