Antares Pharma Announces Amendment to Existing Loan and Security Agreement With Hercules Capital
June 27 2019 - 7:00AM
Antares Pharma, Inc. (NASDAQ: ATRS) (“Antares” or “the Company”)
today announced that it has entered into an amendment to its
existing loan and security agreement with Hercules Capital, Inc.
(NYSE: HTGC), (“Hercules”), to increase the available debt capital
by $25 million for a term loan of up to $50 million. The Company
originally borrowed $25 million from Hercules under the existing
loan agreement in June 2017.
At the same time Antares also provided notice of
the termination of the At-The-Market (“ATM”) equity offering
facility which will be effective on July 6, 2019. The Company has
not sold any shares under the ATM offering facility since March 31,
2019 and will make no further sales under the ATM offering facility
between now and the effective date.
“Today’s announcement of the amendment to the
existing agreement with Hercules further enhances our cash position
and provides us with additional non-dilutive capital to support
current growth in both our proprietary and alliance business as
well as to continue to invest in our strategic plan for what we
believe will be sustained long-term growth,” stated Fred M. Powell,
Executive Vice President, Chief Financial Officer of Antares
Pharma. “We are pleased that Hercules remains a supportive
capital partner to Antares Pharma.”
“Hercules is pleased to expand and extend our
financing partnership with Antares at this important
stage as the Company continues to focus on the development of both
its proprietary and partnered products,” said R. Bryan Jadot,
Senior Managing Director and Group Head - Life Sciences at
Hercules. “This growth investment in Antares provides
another example of the breadth of our platform and our ability to
finance life sciences companies through their growth stages. We are
excited to continue our partnership with
the Antares management team.”
The first tranche of $25 million was funded upon
execution of the original loan agreement in June 2017. A new
$15 million loan was funded upon execution of the amendment.
Under the terms of the amended agreement, Antares has the option to
draw up to an additional $10 million at the Company’s option
commencing on January 1, 2020 and continuing through September 15,
2020. The term of the loan is three years and payments under
the loan are interest only for the initial 24-month period,
followed by equal monthly payments of principal and interest
thereafter until the end of the three-year term. The interest-only
period may be extended to 36 months contingent upon Antares
achieving a certain milestone. The term loan maturity date may also
be extended contingent upon satisfaction of certain loan extension
milestones. The interest rate on the loan is equal to the
lesser of the Prime Rate plus 4.5%, and 9.5%. There are no
equity components to the amended agreement.
About Antares Pharma
Antares Pharma, Inc. is a combination drug
device company focused on the development and commercialization of
self-administered parenteral pharmaceutical products using advanced
drug delivery auto injector technology. The Company has a
portfolio of proprietary and partnered commercial products with
several product candidates in advanced stages of development, as
well as significant strategic alliances with industry leading
pharmaceutical companies including Teva Pharmaceutical Industries,
Ltd. (Teva), AMAG Pharmaceuticals, Inc. and Pfizer Inc.
(Pfizer). Antares Pharma’s proprietary products include
XYOSTED™ (testosterone enanthate) injection, OTREXUP®
(methotrexate) injection for subcutaneous use and Sumatriptan
Injection USP, which is distributed by Teva.
About Hercules Capital,
Inc.
Hercules Capital, Inc. is the leading and
largest specialty finance company focused on providing senior
secured venture growth loans to high-growth, innovative venture
capital-backed companies in a broad variety of technology, life
sciences and sustainable and renewable technology industries.
Since inception (December 2003), Hercules has committed more than
$8.9 billion to over 460 emerging growth companies and is the
lender of choice for entrepreneurs and venture capital firms
seeking growth capital financing.
SAFE HARBOR STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are subject to certain risks
and uncertainties that can cause actual results to differ
materially from those described. Factors that may cause such
differences include, but are not limited to: the Company’s ability
to meet loan extension and interest only payment milestones and the
ability to repay the debt obligation; market acceptance, adequate
reimbursement coverage and commercial success of XYOSTED™ and
future revenue from the same; market acceptance of Teva’s generic
epinephrine auto-injector product and future revenue from the same;
successful completion of the transaction with Ferring International
Center, S.A.; future market acceptance and revenue from Makena®
subcutaneous auto injector; Teva’s ability to successfully
commercialize VIBEX® Sumatriptan Injection USP and the amount of
revenue from the same; continued growth of prescriptions and sales
of OTREXUP®; the timing and results of the Company’s or its
partners’ research projects or clinical trials of product
candidates in development including projects with Teva and Pfizer
and our proprietary programs for ATRS-1701 and our
development program for the use of subcutaneous methotrexate for
the treatment of ectopic pregnancy; actions by the FDA or other
regulatory agencies with respect to the Company’s products or
product candidates of its partners; continued growth in product,
development, licensing and royalty revenue; achievement of the 2019
revenue guidance; the Company’s ability to obtain financial and
other resources for its research, development, clinical, and
commercial activities and other statements regarding matters that
are not historical facts, and involve predictions. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance, achievements or
prospects to be materially different from any future results,
performance, achievements or prospects expressed in or implied by
such forward-looking statements. In some cases you can identify
forward-looking statements by terminology such as ''may'',
''will'', ''should'', ''would'', ''expect'', ''intend'', ''plan'',
''anticipate'', ''believe'', ''estimate'', ''predict'',
''potential'', ''seem'', ''seek'', ''future'', ''continue'', or
''appear'' or the negative of these terms or similar expressions,
although not all forward-looking statements contain these
identifying words. Additional information concerning these and
other factors that may cause actual results to differ materially
from those anticipated in the forward-looking statements is
contained in the "Risk Factors" section of the Company's Annual
Report on Form 10-K, and in the Company's other periodic reports
and filings with the Securities and Exchange Commission. The
Company cautions investors not to place undue reliance on the
forward-looking statements contained in this press release. All
forward-looking statements are based on information currently
available to the Company on the date hereof, and the Company
undertakes no obligation to revise or update these forward-looking
statements to reflect events or circumstances after the date of
this press release, except as required by law.
Contact:
Jack HowarthVice President, Corporate
Affairs609-359-3016jhowarth@antarespharma.com
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