TORONTO, December 13, 2021 (GLOBE NEWSWIRE) – Acerus Pharma Corporation (“company“or”acros(TSX: ASP; OTCQB: ASPCF) today announced that it has entered into an Amendment Agreement with First Generation Capital Inc. (“)first generation”), a subsidiary of Acerus . Chairman of the Board of Directors1, to increase the existing subordinated loan facility (“loan facility”) from $15 million to $25 million. This increase will be made available to the Company by one or more advance payments under a Network Promissory Note secured with First Generation provided that any advance is made before February 1, 2022.
Loan Facility Affiliated to the Master Facility with SWK Funding LLC (“SWK‘) and bear interest at a rate of eight percent (8%) per annum. Subject to the terms of the Affiliation and Creditor Agreement between First Generation and SWK, the loan facility is to be repaid in full on December 31, 2024, with cash payments of interest and/or principal subject to certain exclusions relating to the market value of the Company Principal amount payable to top facility with SWK Loan facility can be paid in full or in part without penalty after full payment with indebtedness to SWK Proceeds from loan facility will be used for current year working capital.
In addition to the increase in the loan facility, SWK has agreed to adjust the facility temporarily to reduce the minimum amount of consolidated unencumbered liquid assets (generally defined as modified cash for certain accounts receivable and payable) from $2 million to $250,000 through February 1, 2022 .
While the company continues to implement a strategy that emphasizes the expansion of NATESTO® Access In the United States, we appreciate the flexibility of first generation in providing funds to ensure such plans continue unimpeded,” said Ed Juditis, Acerus President and CEO. “This funding, and the success of our offering, enhance the company’s outlook as we move into 2022.”
In light of First Generation’s relationship with the Chairman of the Acerus Board of Directors, the independent members of the Board of Directors, led by the Lead Independent Director, met separately to consider and discuss the amendment to the loan facility. After reviewing these independent members of the Board of Directors, it was unanimously determined that entering into a loan facility adjustment was in Acerus’ best interest.
Acerus Pharmaceuticals Corporation is a Canadian-based specialty pharmaceutical company focused on the marketing and development of innovative prescription products that improve the patient experience, with a primary focus in men’s health. The company markets its products through its sales team in the United States and Canada, and through a global network of authorized distributors in other regions.
Acerus shares are traded on TSX under the symbol ASP and on 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 in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of the securities laws. Implicit in this information is assumptions about our future operating results. These assumptions, although considered reasonable by the Company at the time of preparation, may be incorrect. Readers are cautioned that the Company’s actual performance is subject to a number of risks and uncertainties, including with respect to the use of the proceeds of the Loan Facility, the expected benefits from the Loan Facility and the Company’s ability to meet its obligations under the Loan. attached, and could differ materially from what is currently expected as set out above. For more comprehensive information about 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 expectations, which we believe are reasonable as of the current date. You should not attach undue importance to forward-looking information and you should not rely on such information as of any other date. While we may elect, we are neither obligated nor obligated to update such information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
(i) No material change report has been submitted at least 21 days prior to entering into the First Generation Loan Facility Amendment as the terms and conditions of such arrangements were not finalized at that time.
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