TORONTO, December 13, 2021 (GLOBE NEWSWIRE) – Acerus Pharma Corporation (the “Society” Where “Acerus“) (TSX: ASP; OTCQB: ASPCF) announced today that it has entered into an Amending Agreement with First Generation Capital Inc. (“First generation“), an affiliate of the Chairman of the Board of Directors of Acerus1, increase the existing subordinated credit facility (the “Loan facility”) From US $ 15 million to US $ 25 million. This increase will be made available to the Company by way of one or more advances under a secured network promissory note with First Generation provided that such advance is made before February 1, 2022.
The loan facility is subordinated to the senior facility with SWK Funding LLC (“SWK”) And bears interest at the rate of eight percent (8%) per annum. Subject to the terms of the subordination and creditors agreement between First Generation and SWK, the loan facility is repayable in full on December 31, 2024, with cash payments of interest and / or principal subject to certain exceptions. related to the market capitalization of the Company and the outstanding principal of the senior facility with SWK; the loan facility may be prepaid in whole or in part without penalty following full repayment of the debt owed to SWK. The proceeds of the loan facility will be used for general ongoing working capital.
In addition to the increase in the loan facility, SWK has agreed to temporarily modify its facility to reduce the minimum restrictive covenant on consolidated unencumbered liquid assets (generally defined as adjusted cash for certain accounts receivable and payable) by $ 2 million. US dollars to 250,000 US dollars until February 1. , 2022.
“As the company continues to execute a strategy that emphasizes the expansion of NATESTO® access to the United States, we appreciate the flexibility of First Generation to provide funds to ensure that such plans unfold without hindrance, ”said Ed Gudaitis, President and CEO of Acerus. “This financing and the success of our deployment strengthen the Company’s prospects at the dawn of 2022.”
In light of First Generation’s relationship with the chairman of the board of directors of Acerus, the independent members of the board, led by the lead independent director, met separately to review and discuss the amendment to the loan facility. As a result of the review of these independent board members, it was unanimously determined that the completion of the loan facility amendment was in the best interests of Acerus.
Acerus Pharmaceuticals Corporation is a Canada-based specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that enhance the patient experience, with a primary focus on the area of men’s health. The Company markets its products through its own sales force in the United States and Canada, and through a global network of authorized distributors in other territories.
Acerus shares trade on the TSX under the symbol ASP and on the OTCQB under the symbol ASPCF. For more information, visit www.aceruspharma.com and follow us on Twitter and LinkedIn.
Notice Regarding Forward-Looking Statements
Information contained in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Assumptions about our future operating results are implicit in this information. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be inaccurate. Readers are cautioned that the actual performance of the Company is subject to a number of risks and uncertainties, including with respect to the use of the proceeds of the Loan Facility, the anticipated benefits of the Loan Facility, and the the Company’s ability to meet its obligations under the facilitated loan facility, and could differ materially from what is currently expected, as noted above. For more exhaustive information on these risks and uncertainties, you should refer to our annual information form dated March 10, 2021 available at www.sedar.com. The forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe to be reasonable at the current date. You should not place undue importance on forward-looking information and should not rely on such information at any other date. While we may choose to do so, we have no obligation and do not undertake to update such information at any time, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.
(1) No material change report was filed at least 21 days prior to the completion of the First Generation Loan Facility Amendment as the terms of these agreements were not yet finalized at that time.
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