MISSISSAUGA, ON, Aug. 24, 2017 /PRNewswire/ - Nuvo Pharmaceuticals
Inc. (Nuvo or the Company) (TSX:NRI), a commercial healthcare
company with a portfolio of commercial products and pharmaceutical
manufacturing capabilities, today announced that it has secured a
$6.0 million operating revolving
credit facility (Facility) with Royal Bank of Canada (RBC). The Facility is a standby
Facility that can be drawn by Nuvo for working capital requirements
and general corporate purposes. Nuvo has not currently drawn
any amount of the Facility.
The Facility can be accessed by Canadian dollar denominated
loans and U.S. dollar denominated loans that will bear interest at
a low, single-digit premium to RBC's Prime Rate or RBC's U.S. Base
Rate. As is customary for a credit facility of this nature,
loans drawn on the Facility are secured by a first charge in favour
of RBC over the Company's assets. Drawings on the Facility
are limited to a percentage of the Company's then outstanding
accounts receivable and inventory. The Company has the right
to repay any balance owing under the Facility at any time without
bonus interest or penalty.
"We are very pleased to develop a closer relationship with RBC
by establishing this operating line of credit," said Mary-Jane Burkett, Nuvo's Vice-President and
Chief Financial Officer. "While we have $20.0 million of cash and no debt as of the end
of Q2 2017, the Facility increases our flexibility to fund our
operations as we execute our plan to increase and diversify our
revenue streams through product and business acquisitions."
About Nuvo Pharmaceuticals Inc.
Nuvo (TSX:NRI) is a
commercial healthcare company with a portfolio of commercial
products and pharmaceutical manufacturing capabilities. Nuvo
has three commercial products that are available in a number of
countries; Pennsaid® 2%, Pennsaid and the heated
lidocaine/tetracaine patch. Pennsaid 2% is sold in the
U.S. by Horizon Pharma plc (NASDAQ:HZNP) and is available for
partnering in certain other territories around the world.
Nuvo manufactures Pennsaid for the global market and Pennsaid 2%
for the U.S. market at its U.S. Food and Drug Administration,
Health Canada and E.U. approved manufacturing facility in
Varennes, Québec. For
additional information, please visit
www.nuvopharmaceuticals.com.
Forward-Looking Statements
This Press Release
contains "forward-looking statements" within the meaning of
applicable securities laws. Forward-looking statements can be
identified by words such as: "anticipate," "intend," "plan,"
"goal," "seek," "believe," "project," "estimate," "expect,"
"strategy," "future," "likely," "may," "should," "will" and similar
references to future periods.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
the Company's current beliefs, expectations and assumptions
regarding the future of its business, future plans and strategies,
projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of the Company's control. Nuvo's actual results
and financial condition may differ materially from those indicated
in the forward-looking statements. Therefore, readers should not
rely on any of these forward-looking statements. Important factors
that could cause Nuvo's actual results and financial condition to
differ materially from those indicated in the forward-looking
statements include, among others, the risk factors included in
Nuvo's most recent Annual Information Form dated March 1, 2017 under the heading "Risks Factors",
and as described from time to time in the reports and disclosure
documents filed by Nuvo with Canadian securities regulatory
agencies and commissions. These and other factors should be
considered carefully and readers should not place undue reliance on
Nuvo's forward-looking statements. As a result of the foregoing and
other factors, no assurance can be given as to any such future
results, levels of activity or achievements and none of Nuvo or any
other person assumes responsibility for the accuracy and
completeness of these forward-looking statements.
Any forward-looking statement made by the Company in this
Press Release is based only on information currently available to
it and speaks only as of the date on which it is made. Except as
required by applicable securities laws, Nuvo undertakes no
obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
SOURCE Nuvo Pharmaceuticals Inc.