Acerus Announces Amendment to Loan Facilities
Pays off SWK Facility; Reduces Interest Going Forward
TORONTO, Feb. 18, 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 secured loan facility (the “Loan Facility”) from US$25 million to US$30.845 million. This increase was made available to the Company by way of a single advance under a secured grid promissory note with First Generation. The proceeds from the Loan Facility increase were used on February 17, 2022 to settle all obligations under the former senior loan facility with SWK Funding LLC (“SWK”).
“The Company and Board wish to once again thank First Generation for its continued support and for the financial flexibility provided through an increase to its current credit facility,” said Ed Gudaitis, President and Chief Executive Officer of Acerus. “This transaction, to pay off and, thus, eliminate our former loan agreement with SWK, underscores the confidence of First Generation in the Company’s future. It reduces interest expense and strengthens the Company’s position to take advantage of the many growth opportunities that lie ahead.”
The Loan Facility bears interest at a rate of eight percent (8%) per annum. It is repayable in full on December 31, 2024 but can be prepaid in full or in part without penalty.
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.
About Acerus
Acerus Pharmaceuticals Corporation is a Canadian-based 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.
Acerus’ shares trade 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 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, 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 10, 2021 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.
Company Contact
ir@aceruspharma.com
Investor Relations Contact
Chris Witty
Acerus Investor Relations
(646) 438-9385
cwitty@darrowir.com
