Apollomics Inc. (NASDAQ: APLM) entered into a $2.0 million unsecured convertible promissory note with Chairman and Chief Executive Officer Hung-Wen Chen on March 30, according to a company statement.

The proceeds will support clinical development programs and general corporate operations at the Foster City, California-based biopharmaceutical company.

The note carries a 0% interest rate and will automatically convert to equity securities upon completion of a subsequent equity financing with aggregate gross proceeds of at least $10.0 million. The conversion price will be calculated at a 20% discount to the lowest per-share price issued to investors in such financing.

The company's independent Audit Committee and Board of Directors approved the related-party transaction, with Chen abstaining from the vote. The transaction followed an evaluation of financing alternatives and benchmarking analysis against market terms for similar bridge financing transactions in the biotechnology sector.

Apollomics focuses on developing oncology therapies designed to work with other treatment options to target the immune system and specific molecular pathways. The company's lead program is vebreltinib, a c-Met inhibitor for treating non-small cell lung cancer and other advanced tumors with c-Met alterations, currently in Phase 2 multicohort clinical trials in the United States and over 10 other countries.