Adamis Pharmaceuticals Announces Receipt of Loan Proceeds Under Paycheck Protection Program
April 15 2020 - 04:05PM
Adamis Pharmaceuticals Corporation (NASDAQ: ADMP) today
announced that it has received loan proceeds of $3,191,700 (“PPP
Loan”) 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 payroll expenses of the qualifying business, calculated as
provided under the PPP. The PPP provides a mechanism for
forgiveness of up to the full amount borrowed after eight weeks 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 or
other permitted purposes, and maintains its payroll 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 during the
eight-week period.
The PPL Loan is evidenced by a promissory note (the “Note”)
given by the Company as borrower to Arvest Bank, as the
lender. The interest rate on the Note is 1.0% per annum.
Payments of principal and interest are deferred for seven
months from the date of the Note (the “Deferral Period”). Any
unforgiven portion of the PPP Loan is payable over the two year
term, with payments deferred during the Deferral Period. The
Company is permitted to prepay the Note at any time without payment
of any premium.
About Adamis PharmaceuticalsAdamis
Pharmaceuticals Corporation is a specialty biopharmaceutical
company primarily focused on developing and commercializing
products in various therapeutic areas, including respiratory
disease, allergy and opioid overdose. The company’s SYMJEPI
(epinephrine) Injection 0.3mg and SYMJEPI (epinephrine) Injection
0.15mg products were approved by the FDA for use in the emergency
treatment of acute allergic reactions, including anaphylaxis.
In July 2019, Sandoz, a division of Novartis Group,
announced it had fully launched both in the U.S. Please refer
to www.SYMJEPI.com for additional product
information. Adamis is developing additional products,
including a naloxone injection product candidate, ZIMHI, for the
treatment of opioid overdose, and a metered dose inhaler and dry
powder inhaler product candidates for the treatment of asthma and
COPD. The company’s subsidiary, U.S. Compounding, Inc.,
compounds sterile prescription drugs, and certain nonsterile drugs
for use by hospitals, clinics and surgery centers throughout most
of the United States.
Adamis Forward Looking StatementsThis press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward looking statements involve risks and uncertainties that
could cause actual results to differ materially from predicted or
expected results. Actual results may differ from those
contemplated by forward-looking statements in this press release,
such as statements regarding the Company’s use of proceeds from the
PPP Loan, the amount of the PPP Loan to the Company that will be
eligible to be forgiven, any actual forgiveness of some or all of
the amount of the PPP Loan evidenced by the Note, and other risks
inherent in the Company’s business including those described in the
Company’s periodic filings with the Securities and Exchange
Commission. You should not place undue reliance on any
forward-looking statements. Further, any forward-looking
statement speaks only as of the date on which it is made, and
except as may be required by applicable law, we undertake no
obligation to update or release publicly the results of any
revisions to these forward-looking statements or to reflect events
or circumstances arising after the date of this press
release.
Contacts:Mark Flather Senior Director, Investor
Relations & Corporate Communications Adamis Pharmaceuticals
Corporation (858) 412-7951mflather@adamispharma.com
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