Alimera Sciences Strengthens Financial Position
October 20 2016 - 4:42PM
Facility increased to $45 million
Alimera Sciences, Inc. (NASDAQ:ALIM) (Alimera), a pharmaceutical
company that specializes in the research, development and
commercialization of prescription ophthalmic pharmaceuticals, today
announced that its United Kingdom subsidiary, Alimera Sciences
Limited (Limited), has amended its $35 million term loan agreement
(the Amendment) with Hercules Capital, Inc. (NYSE:HTGC) (Hercules).
Under the Amendment, Hercules has agreed to provide Limited up to
$10 million in additional financing upon the achievement by Alimera
and its subsidiaries of certain revenue milestones.
“This amended debt facility strengthens our financial position.
We believe the Amendment mitigates the need to seek additional
financing for the continued commercialization of ILUVIEN in the
U.S., the United Kingdom, Germany and Portugal," said Rick
Eiswirth, Alimera's president and chief financial officer.
"Further, the Amendment provides us with the potential to access
additional funds for expansion elsewhere in Europe or, upon the
achievement of positive cash flow in our existing markets, clinical
trials for possible extension of the ILUVIEN label."
Under the Amendment, the interest-only payment period has been
extended by 18 months, through November 2018, provided that Alimera
meets, on a consolidated basis with its subsidiaries, certain
revenue and liquidity requirements. The amended debt facility
requires that Alimera and its subsidiaries meet certain minimum
revenue, liquidity and EBITDA covenants. The revenue covenant will
not apply with respect to any month during which Alimera and its
subsidiaries maintain at least $35 million in liquidity, including
cash and eligible accounts receivable, at all times during such
month and no event of default under the amended debt facility has
occurred or exists at any time during such month.
Amortization of the term loan is now expected to start in
December 2018 with 24 equal monthly payments of principal and
interest.
The term loan will accrue interest from and after the date of
the Amendment at the greater of 11% or 7.5% plus the prime rate per
annum. The outstanding principal balance will also bear “payment in
kind” interest at the rate of 1% per annum, which will be added to
the outstanding principal balance at each interest payment
date.
In connection with the Amendment, Alimera issued Hercules a
warrant to purchase up to the amount of shares of Alimera’s common
stock equal to $500,000 divided by the lowest volume-weighted
average sale price for a share reported over any ten consecutive
trading days during the period commencing on and including
September 23, 2016 and ending on the earlier to occur of (i)
December 30, 2016 (inclusive of such date), and (ii) the second
trading day immediately preceding the date of closing of a Merger
Event (as such term is defined in the warrant agreement).
About Alimera Sciences, Inc.
Alimera, founded in June 2003, is a pharmaceutical company
that specializes in the research, development and commercialization
of prescription ophthalmic pharmaceuticals. Alimera is presently
focused on diseases affecting the back of the eye, or retina,
because these diseases are not well treated with current therapies
and affect millions of people in aging populations.
Alimera's commitment to retina specialists and their patients is
manifest in Alimera's product and development portfolio designed to
treat early- and late-stage diseases. For more information, please
visit www.alimerasciences.com.
Forward-Looking Statements
This press release contains "forward-looking statements," within
the meaning of the Private Securities Litigation Reform Act of
1995, regarding, among other things, the potential mitigation of
Alimera’s need to seek additional funding for the continued
commercialization of ILUVIEN in the U.S., the United Kingdom,
Germany and Portugal, the possibility that Alimera will be able to
access additional funds, and Alimera’s plans with respect to
possible geographic expansion and extension of the ILUVIEN label.
Such forward-looking statements are based on current expectations
and involve inherent risks and uncertainties, including factors
that could delay, divert or change any of them and could cause
actual results to differ materially from those projected in its
forward-looking statements. Meaningful factors which could cause
actual results to differ include, but are not limited to, Alimera
failing to meet its financial covenants under its amended debt
facility with Hercules, which could materially affect Alimera's
commercialization of ILUVIEN and its ability to borrow additional
funds, market acceptance of ILUVIEN in
the U.S. and Europe, as well as other factors
discussed in the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" sections
of Alimera's Annual Report on Form 10-K for the year
ended December 31, 2015 and Quarterly Report on Form 10-Q
for the quarter ended June 30, 2016, which are on file with
the Securities and Exchange Commission (SEC) and
available on the SEC's website at http://www.sec.gov.
Additional factors may also be set forth in those sections of
Alimera’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2016, to be filed with the SEC in the fourth quarter
of 2016. In addition to the risks described above and in
Alimera's Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K and other filings with
the SEC, other unknown or unpredictable factors also could
affect Alimera's results. There can be no assurance that the actual
results or developments anticipated by Alimera will be realized or,
even if substantially realized, that they will have the expected
consequences to, or effects on, Alimera.
Therefore, no assurance can be given that the outcomes stated in
such forward-looking statements and estimates will be achieved. All
forward-looking statements contained in this press release are
expressly qualified by the cautionary statements contained or
referred to herein. Alimera cautions investors not to rely too
heavily on the forward-looking statements Alimera makes or that are
made on its behalf. These forward-looking statements speak only as
of the date of this press release (unless another date is
indicated). Alimera undertakes no obligation, and specifically
declines any obligation, to publicly update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
For press inquiries:
Katie Brazel
for Alimera Sciences
404-317-8361
kbrazel@bellsouth.net
For investor inquiries:
CG Capital
for Alimera Sciences
877-889-1972
investorrelations@cg.capital
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