Spruce Biosciences Secures Up to $50 Million in Growth Capital from Avenue Capital

Key Terms

loan facility financial

A loan facility is a formal agreement with a bank or lender that lets a company borrow money up to a set limit under agreed terms — like a large credit card or mortgage tailored for a business. It matters to investors because it determines how easily a company can get cash for operations, growth or debt repayment, and influences interest costs, leverage and any lender-imposed rules that can affect future strategy and risk.

tranches financial

Tranches are portions or slices of a larger financing deal—such as a loan, bond issue, or equity round—that are released at different times or under different conditions. For investors they matter because each tranche can carry different risk, interest or payout terms and may be paid only if certain targets are met; think of funding as slices of a cake handed out as progress is made.

biologics license application (BLA) regulatory

A biologics license application (BLA) is a formal request to a government agency seeking approval to sell a biological medicine, such as vaccines or gene therapies, in the market. It is similar to a detailed report that proves the product is safe, effective, and manufactured properly. For investors, a BLA signifies a critical step toward commercial availability, often impacting a company's valuation and market prospects.

enzyme replacement therapy medical

Enzyme replacement therapy is a medical treatment that involves providing patients with artificial versions of natural enzymes their bodies are missing or not producing enough of. This approach can help manage certain health conditions by restoring essential functions, similar to replacing a faulty part in a machine to keep it running smoothly. For investors, advancements or approvals in this therapy can signal progress in biotech innovation and potential market growth.

Sanfillipo Syndrome Type B (MPS IIIB) medical

Sanfilippo syndrome type B (MPS IIIB) is a rare, inherited metabolic disorder in which the body lacks an enzyme needed to break down certain cellular waste, causing toxic buildup in the brain and progressive loss of cognitive and motor skills, usually beginning in childhood. For investors, it matters because the condition represents a small but urgent market with high unmet medical need: successful therapies can command premium pricing and regulatory incentives, but development is risky due to complex biology and challenging clinical trials.

Initial Funding of $15 Million from the First of Four Tranches, Extending Cash Runway into 2027

Facility Will Support Advancement and Potential Launch of TA-ERT for the Treatment of MPS IIIB

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Spruce Biosciences, Inc. (Spruce) (Nasdaq: SPRB), a late-stage biopharmaceutical company focused on developing and commercializing novel therapies for neurological disorders with significant unmet medical need, today announced that, on January 7, 2026, it entered into a loan facility with Avenue Venture Opportunities Fund II, L.P., a fund of Avenue Capital Group (Avenue Capital), for up to $50 million in growth capital.

The loan facility has a 42-month term and includes an initial tranche of $15 million, which will be fully funded on or around January 9, 2026, and three additional tranches totaling up to $35 million, the funding of which is subject to the satisfaction of certain terms and conditions of the loan and security agreement, including the achievement of key regulatory and commercial milestones related to the company’s development and planned commercial launch of tralesinidase alfa enzyme replacement therapy (TA-ERT) for the treatment of Sanfillipo Syndrome Type B (MPS IIIB).

“We are pleased to partner with Avenue Capital on a strategic financing agreement with attractive terms that strengthens our financial flexibility,” said Samir Gharib, President and Chief Financial Officer of Spruce Biosciences. “At the drawdown of the initial $15 million tranche, we expect our cash and cash equivalents to fund planned operations into 2027, supporting the biologics license application (BLA) filing of TA-ERT for the treatment of MPS IIIB, while also accelerating pre-launch commercial activities.”

“We believe Spruce is well-positioned to advance and potentially launch TA-ERT as the first disease-modifying therapy to treat MPS IIIB, and we’re proud to be partnering with this outstanding team to advance that mission,” said Chad Norman, Senior Portfolio Manager at Avenue Capital. “With no FDA-approved treatments currently available to treat MPS IIIB, TA-ERT has the potential to be a groundbreaking advancement for patients and families impacted by this devastating disease.”

Armentum Partners acted as the company's exclusive financial advisor on this transaction.

Financial Update

Spruce also reported cash and cash equivalents were approximately $48.9 million as of December 31, 2025.

This estimate of the company’s cash and cash equivalents as of December 31, 2025 is preliminary, has not been audited and is subject to change upon completion of the company’s financial statement closing procedures. Additional information and disclosure would be required for a more complete understanding of the company’s financial position and results of operations as of December 31, 2025. The information presented herein should not be considered a substitute for the financial information the company files with the SEC in its annual report on Form 10-K for the year ended December 31, 2025. The company has no intention or obligation to update preliminary estimates of its cash and cash equivalents set forth above.

About Avenue Venture Opportunities

The Avenue Venture Debt Funds seek to provide creative financing solutions to high-growth, venture capital-backed technology and life science companies, focusing generally on companies within the underserved segment of the market created by the widening financing gap between commercial banks and larger debt funds. The Avenue Venture Debt funds are part of the larger group of funds of Avenue Capital Group. For additional information on Avenue Capital Group, which is a global investment firm with assets under management of more than $10 billion, visit www.avenuecapital.com.

About Spruce Biosciences

Spruce Biosciences is a late-stage biopharmaceutical company focused on developing and commercializing novel therapies for neurological disorders with significant unmet medical need. To learn more, visit www.sprucebio.com and follow us on X, LinkedIn, Facebook and YouTube.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, the timing and likelihood of regulatory filings and approvals for TA-ERT, including the anticipated biologics license application submission of TA-ERT for MPS IIIB, TA-ERT’s potential to be the first disease-modifying therapy to treat MPS IIIB and to be a ground breaking advancement for patients and families impacted by MPS IIIB, and Spruce’s cash runway and financial position. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “anticipate,” “believe,” “will,” “potential,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Spruce’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with Spruce’s business in general, the impact of geopolitical and macroeconomic events, and the other risks described in Spruce’s filings with the U.S. Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Spruce undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260108628049/en/

Media

Carolyn Hawley

Inizio Evoke Comms

Carolyn.Hawley@inizioevoke.com

media@sprucebio.com

Investors

Samir Gharib

President and CFO

Spruce Biosciences, Inc.

investors@sprucebio.com

Source: Spruce Biosciences, Inc.