CAPRICOR THERAPEUTICS, INC. 8-K

What Happened

• On July 9, 2026, Capricor Therapeutics, Inc. (Capricor) announced it entered a Lease Agreement with ARE-SD Region No. 39 Owner, LLC for approximately 171,000 rentable square feet at 9625 Towne Centre Drive, San Diego, CA, to be used as its new headquarters, including expanded manufacturing cleanrooms, R&D labs and administrative space.
• The lease term is estimated to commence on the earlier of (i) the date Capricor’s lease contingency tied to FDA approval of Deramiocel for Duchenne muscular dystrophy is satisfied or waived, or (ii) December 31, 2026; the rent commencement date will be 12 months after lease commencement. The lease ends 138 months after the first day of the first full month following rent commencement.

Key Details

• Premises: ~171,000 rentable sq ft at 9625 Towne Centre Drive, San Diego, CA.
• Initial rent: $5.60 per rentable sq ft (~$958,000 per month); annual increases of 3.0%.
• Rent abatements: 18-month full base rent abatement starting at rent commencement, then a 6-month partial abatement where base rent is payable on only 128,068 sq ft (after which full rent applies to entire premises).
• Other terms: landlord to provide a tenant improvement allowance; Capricor to post a security deposit of ~ $958,000 (cash or letter of credit) and to pay real property taxes, building insurance, routine maintenance and operating costs.
• Conditional termination: if Capricor does not receive FDA approval of Deramiocel for Duchenne muscular dystrophy by Dec 31, 2026, either party may terminate the lease by written notice within five business days after that date.
• The 8-K also references the creation of a potential direct financial obligation related to the lease (Item 2.03); the full lease text will be filed as an exhibit to Capricor’s next Form 10-Q.

Why It Matters

• This is a material, long-term real estate commitment that expands Capricor’s manufacturing and R&D capacity and positions the company for commercial readiness if and when FDA approval is obtained.
• The lease creates significant future cash rental and occupancy obligations (initially ≈ $958k/month, subject to increases) and additional operating cost responsibilities (taxes, insurance, maintenance), though rent abatements and a conditional termination tied to FDA approval reduce near-term cash outflows and some regulatory risk.
• Investors should note the FDA-approval contingency (Deramiocel for Duchenne muscular dystrophy) is central to lease commencement and potential termination; the company will file the full lease as an exhibit to its upcoming 10-Q for the quarter ended June 30, 2026 for complete terms.