TORONTO, Aug. 05, 2022 (GLOBE NEWSWIRE) — Acerus Pharmaceuticals Corporation (the “Company” or “Acerus”) (TSX:ASP; OTCQB:ASPCF) today announced that it has entered into an amending agreement with First Generation Capital Inc. (“First Generation”), a company affiliated with the Chairman of the Board of Directors of Acerus1, to increase its existing secured loan facility (the “Loan Facility”) from US$37.945 million to US$47.945 million. This increase will be made available to the Company by way of two advances of US$5.0 million each on August 5 and 8, 2022 under a secured grid promissory note with First Generation.
The Loan Facility bears interest at a rate of eight percent (8%) per annum and is repayable in full on December 31, 2024 but can be prepaid in full or in part without penalty. The proceeds from the Loan Facility will be used for ongoing general working capital.
In light of First Generation’s relationship to the Chairman of the Board of Directors of Acerus, the independent members of the Board of Directors, led by the Lead Independent Director, separately met to consider and discuss the amendment to the Loan Facility. Following the review of such independent members of the Board of Directors, it was unanimously determined that the entering into of the amendment to the Loan Facility was in the best interests of Acerus.
In addition, the Company today announced that it has amended the promissory note (the “Note”) in the amount of US$4.91 million related to the up-front fee owed to former Serenity Pharmaceuticals LLC (“Serenity”) securityholders. The securityholder representative and Acerus agreed to extend the maturity date in the Note such that 50% of the balance will be payable on September 30, 2022, and the remainder, including accrued interest, is due on December 31, 2022. This amendment will allow Acerus more time to secure additional financing.
Acerus Pharmaceuticals Corporation is a specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that improve patient experience, with a primary focus in the field of men’s health. The Company commercializes its products via its own salesforce in the United States and Canada, and through a global network of licensed distributors in other territories.
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 securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties, including with respect to the use of proceeds of the Loan Facility, the anticipated benefits of the Loan Facility and the Company’s ability to meet its obligations under the Loan Facility, the commercial performance of NATESTO® and NOCTIVA® globally and in the U.S. as well as the ability of the Company to secure financing to pay the Note at maturity and execute on its strategy, and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 14, 2022 that is available on www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
(1) A material change report was not filed at least 21 days prior to the entering into of the amendment to the Loan Facility from First Generation as the terms and conditions of such arrangements were not yet finalized at such time.
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