ADMA Biologics, Inc. (Nasdaq: ADMA) (“ADMA” or the “Company”), an
end-to-end commercial biopharmaceutical company dedicated to
manufacturing, marketing and developing specialty plasma-derived
biologics, today announced an amendment to its existing senior
secured term loan with Perceptive Advisors (“Perceptive”), which
provides for an additional loan tranche of $15 million, increasing
the total size of the credit facility to $100 million.
The amended terms for the existing $85 million credit facility
additionally provide for, among other things, a two-year extension
of the interest only period through the duration of the credit
facility now maturing in March 2024, at an unchanged borrowing rate
of 11%. The newly issued loan tranche of $15 million
from Perceptive was fully drawn and used to pay the remaining
obligations under the Biotest AG subordinated note entered into in
June of 2017, at a 7% mutually agreed discount with no associated
prepayment penalties. This additional loan tranche carries the same
terms as the amended senior secured loans. There were no
modifications made to the existing revenue covenants of the credit
facility with Perceptive.
“This upsized loan amendment demonstrates Perceptive’s long-term
view for the plasma industry and ADMA’s important role as a
reliable producer of plasma-derived biologics,” said Joseph
Edelman, Chief Executive Officer and Founder of Perceptive
Advisors. “We remain committed to supporting ADMA’s business and
unlocking shareholder value that we believe has yet to be realized.
We are optimistic that the asset value of manufactured plasma and
plasma collection centers will continue to appreciate into the
future.”
“This amendment to our senior secured term loan, with its
increased size and extended maturities, strengthens our long-term
capital position and allows us to continue to execute on our
strategic priorities, including supply chain enhancement
initiatives and plasma center expansion, in addition to generating
considerable near-term and ongoing revenue growth,” stated Adam
Grossman, President and Chief Executive Officer of ADMA. “Despite
ongoing COVID-19 headwinds, we remain on track to achieve our
previously provided guidance for topline revenues of $250 million
or greater by 2024, and we are confident that we are
well-positioned to achieve profitability prior to the new 2024
maturity date of the loan. The continued support from Perceptive,
who remains our largest equity holder, is a testament to the
shareholder value that we believe will be created as we execute on
these corporate objectives and establish ADMA as the only fully
integrated American plasma fractionator.”
“Perceptive is pleased to provide additional capital to support
ADMA’s near-term revenue and profitability growth strategy,” stated
Sam Chawla, Portfolio Manager at Perceptive. “The Company has made
significant progress and has met all of our goals and objectives to
date. We look forward to seeing ADMA’s continued progress and
supporting the Company’s mission and value creating business
objectives, focused on improving healthcare options for patients at
risk of infectious diseases.”
The Perceptive credit amendment has an interest-only term with a
maturity date of March 1, 2024. Borrowings under the Perceptive
credit agreement bear interest at a rate per annum equal to 7.5%
plus the greater of one-month LIBOR and 3.5%. ADMA will also issue
a warrant to Perceptive to purchase 2,390,000 shares of the
Company’s common stock at the lower of ADMA’s closing share price
on the date of the amendment and the 10-day VWAP ahead of
closing.
The debt financing disclosed in this press release is not all
inclusive and, as such, the statements in this press release are
qualified in their entirety by reference to the description of the
debt financing transaction and corresponding exhibits, which are
included in a Current Report on Form 8-K filed concurrently with
this press release by ADMA with the Securities and Exchange
Commission.
About Perceptive Advisors
(Perceptive)
Founded in 1999, Perceptive Advisors is a leading healthcare
focused investment firm with over $8.5 billion of regulatory assets
under management as of October 29, 2020. Since inception,
Perceptive Advisors has focused on supporting progress in the life
sciences industry by identifying opportunities and directing
financial resources toward the most promising technologies in
modern healthcare. For more information about Perceptive,
visit www.perceptivelife.com.
About ADMA Biologics, Inc. (ADMA)
ADMA Biologics is an end-to-end American commercial
biopharmaceutical company dedicated to manufacturing, marketing and
developing specialty plasma-derived biologics for the treatment of
immunodeficient patients at risk for infection and others at risk
for certain infectious diseases. ADMA currently manufactures and
markets three United States Food and Drug Administration (FDA)
approved plasma-derived biologics for the treatment of immune
deficiencies and the prevention of certain infectious diseases:
BIVIGAM® (immune globulin intravenous, human) for the treatment of
primary humoral immunodeficiency (PI); ASCENIV™ (immune globulin
intravenous, human – slra 10% liquid) for the treatment of PI; and
NABI-HB® (hepatitis B immune globulin, human) to provide enhanced
immunity against the hepatitis B virus. ADMA manufactures its
immune globulin products at its FDA-licensed plasma fractionation
and purification facility located in Boca Raton, Florida. Through
its ADMA BioCenters subsidiary, ADMA also operates as an
FDA-approved source plasma collector in the U.S., which provides a
portion of its blood plasma for the manufacture of its products.
ADMA’s mission is to manufacture, market and develop specialty
plasma-derived, human immune globulins targeted to niche patient
populations for the treatment and prevention of certain infectious
diseases and management of immune compromised patient populations
who suffer from an underlying immune deficiency, or who may be
immune compromised for other medical reasons. ADMA has received
U.S. Patents: 9,107,906, 9,714,283, 9,815,886, 9,969,793 and
10,259,865 related to certain aspects of its products and product
candidates. For more information, please visit
www.admabiologics.com.
Cautionary Note Regarding Forward-Looking
StatementsThis press release contains “forward-looking
statements” pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, about ADMA Biologics,
Inc. (“we,” “our” or the “Company”). Forward-looking statements
include, without limitation, any statement that may predict,
forecast, indicate, or imply future results, performance or
achievements, and may contain such words as “estimate,” “project,”
“intend,” “forecast,” “target,” “anticipate,” “plan,” “planning,”
“expect,” “believe,” “will,” “should,” “could,” “would,” “may,” or,
in each case, their negative, or words or expressions of similar
meaning. These forward-looking statements also include, but are not
limited to, statements about ADMA’s future results of operations;
timing of revenue and profitability; execution of corporate
objectives and achievement of goals; realization of shareholder
value; and future appreciation of the asset value of manufactured
plasma and plasma collection centers. Actual events or results may
differ materially from those described in this document due to a
number of important factors. Current and prospective security
holders are cautioned that there also can be no assurance that the
forward-looking statements included in this press release will
prove to be accurate. Except to the extent required by applicable
laws or rules, ADMA does not undertake any obligation to update any
forward-looking statements or to announce revisions to any of the
forward-looking statements. Forward-looking statements are subject
to many risks, uncertainties and other factors that could cause our
actual results, and the timing of certain events, to differ
materially from any future results expressed or implied by the
forward-looking statements, including, but not limited to, the
risks and uncertainties described in our filings with the U.S.
Securities and Exchange Commission, including our most recent
reports on Form 10-K, 10-Q and 8-K, and any amendments thereto.
COMPANY
CONTACT: Skyler BloomDirector,
Investor Relations and Corporate Strategy | 201-478-5552 |
sbloom@admabio.com
INVESTOR RELATIONS CONTACT:Sam
MartinManaging Director, Argot Partners | 212-600-1902 |
sam@argotpartners.com
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