Alimera Sciences Receives $1.8 Million Loan Under the Paycheck Protection Act
April 23 2020 - 8:00AM
Alimera Sciences, Inc. (Nasdaq: ALIM) (Alimera), a global
pharmaceutical company that specializes in the commercialization
and development of prescription ophthalmic pharmaceuticals for the
treatment of retinal diseases, today announces it received on April
22, 2020 approximately $1.8 million in support from the federal
government under the Paycheck Protection Program (PPP).
The PPP, established as part of the Coronavirus Aid, Relief and
Economic Security Act (CARES Act), provides for loans to qualifying
businesses for amounts up to 2.5 times the average monthly U.S.
payroll costs of the qualifying business, calculated as provided
under the PPP. The PPP also provides a mechanism for forgiveness of
up to the full amount borrowed as long as the borrower uses the
loan proceeds during the eight-week period after the loan
origination for eligible purposes, including payroll costs, certain
benefits costs, rent and utilities costs, and maintains its
employment and compensation levels, subject to certain other
requirements and limitations. The amount of loan forgiveness is
subject to reduction, among other reasons, if the borrower
terminates employees or reduces salaries or wages during the
eight-week period. Alimera currently has no intention to reduce
staffing levels, salaries or wages.
The PPP loan is unsecured and is evidenced by a note dated April
21, 2020 in favor of HSBC Bank USA, National Association as the
lender. The interest rate on the note is 1.0% per annum. Payments
of principal and interest are deferred for 180 days from the date
of the note (the deferral period). Any unforgiven portion of the
PPP loan is payable over a two-year term, with payments deferred
during the deferral period. Alimera is permitted to prepay the note
at any time without premium.
“Our employee base is critical to continuing to serve our
physician customers both now and when this pandemic subsides.
Therefore, we intend to retain all our staff during this crisis,”
said Rick Eiswirth, Alimera’s President and Chief Executive
Officer. “Receiving this funding from the federal government is
very helpful to executing on this plan.”
About Alimera Sciences, Inc.
www.alimerasciences.com
Alimera Sciences is a pharmaceutical company that specializes in
the commercialization and development 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 our
aging populations. For more information, please visit
www.alimerasciences.com.
Forward Looking Statements
This press release may include “forward-looking statements,”
within the meaning of the Private Securities Litigation Reform Act
of 1995, regarding, among other things, Alimera’s expectations
regarding how it will use the PPP loan proceeds and its
expectations regarding its staffing levels, salaries and wages.
Such forward-looking statements are based on current expectations
and involve inherent risks and uncertainties, including factors
that could delay, divert or change these expectations, and could
cause actual results to differ materially from those projected in
these forward-looking statements. Meaningful factors that could
cause actual results to differ include, but are not limited to,
uncertainties associated with:
(a) Alimera’s ability to use the PPP loan proceeds for eligible
purposes; and
(b) Alimera’s ability to maintain its current levels of
staffing, salaries and wages, given the uncertain COVID-19
environment and the other factors cited or referred to in this
paragraph, including the adverse effects of COVID-19, and its
unpredictable duration, in the regions where we have customers,
employees and distributors; and the adverse effect on sales of
ILUVIEN® of (i) limitations on in-person access to physicians
imposed by governments or healthcare facilities; and (ii) the
unwillingness of patients to visit their physicians in person due
to their fear of contracting COVID-19, as well as the 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, 2019, which is on file with the SEC and available
on the SEC’s website at http://www.sec.gov. Alimera undertakes no
obligation to publicly update or revise any of the forward-looking
statements made in this press release, whether as a result of new
information, future events or otherwise, except as required by law.
Therefore, you should not rely on these forward-looking statements
as representing Alimera’s views as of any date after today.
For investor inquiries: |
For media inquiries: |
Scott Gordon |
Jules Abraham |
for Alimera
Sciences |
for Alimera Sciences |
scottg@coreir.com |
julesa@coreir.com |
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