September 26, 2012 / 10:57 PM / 5 years ago

Peregrine Pharma shares fall on capital woes

(Reuters) - Peregrine Pharmaceuticals Inc (PPHM.O) said it has capital to fund its operations until April as it was forced to pay off a loan after it reported errors in data from a lung cancer study, sending its shares down as much as 15 percent in extended trade.

Its lenders deemed the company in default after Peregrine said on Monday that positive results reported earlier this month from the study contained major discrepancies, shocking investors and driving its shares down.

In a regulatory filing, Peregrine said its lenders demanded payment of the outstanding principal amount of $15 million and accrued interest under a loan agreement dated August 30, 2012.

The company had $18.99 million in cash and cash equivalents as of July 31, 2012.

Peregrine said it repaid the loan in full and its funds would last through the fourth quarter of its fiscal year 2013, unless it raises additional capital.

Peregrine’s shares closed at $1.66 on Wednesday on the Nasdaq, but fell to $1.41 after the bell.

Reporting by Zeba Siddiqui in Bangalore; Editing by Sreejiraj Eluvangal

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