Company Also Reaches Agreement with Sixth
Street Partners to Extend the Maturity Date of its Financing
Agreement to September 30, 2022 with the Ability to Extend to
November 30, 2022 if Additional Capital is Received
TherapeuticsMD, Inc. (NASDAQ: TXMD), (“TherapeuticsMD” or the
“Company”) an innovative, leading women’s healthcare company,
announced today that it has received a $15 million private
investment in the Company’s common stock and a new series of
preferred stock (“PIPE”) from Rubric Capital Management LP
(“Rubric”). TherapeuticsMD expects to use the proceeds from the
transaction to fulfill its near-term operating capital
requirements.
The Company also entered into an amendment with its lender,
Sixth Street Specialty Lending, Inc. (“Sixth Street”), to extend
the maturity date of the Company’s Financing Agreement debt to
September 30, 2022. The Company has the option to further extend
the maturity date until October 31, 2022 and November 30, 2022 if
it receives additional equity capital of $7 million per
extension.
The Company believes that the PIPE, together with the financing
agreement extension, will enable TherapeuticsMD to continue meeting
the significant demand for its portfolio of women’s health and
wellness products while its Board of Directors and management team
evaluate strategic alternatives to strengthen the Company’s
long-term financial position.
“TherapeuticsMD has three growing assets whose value has been
enhanced by the recent approval of both Annovera’s supplemental NDA
and lower-dose Bijuva, as well as the increasing relevance of
convenient and safe contraceptive options for women,” said David
Rosen, Managing Partner of Rubric Capital Management. “With our
investment, TherapeuticsMD will have the time and resources to
thoroughly evaluate its strategic options with the objective of
securing the best outcome for all shareholders.”
“We are delighted to have the support of Rubric as we continue
to evaluate strategic alternatives for the Company” said Hon. Tommy
Thompson, Chairman of the Board. “We believe this equity capital,
plus Sixth Street’s extension, will enhance the Company’s ability
to achieve the highest possible value for our equity holders.”
Transaction Details
In exchange for its initial $15 million investment, Rubric
received 565,000 shares of TherapeuticsMD common stock and 15,000
shares of newly designated Series A Preferred Stock, with a
liquidation value of $1,333 per share. Following closing of the
transaction, Rubric will own approximately 18.3% of the Company’s
common stock.
The Company also granted Sixth Street warrants to acquire
200,000 shares of the Company’s common stock at an exercise price
of $0.01 and would grant 125,000 additional common stock warrants
for each additional monthly extension that the Company elects.
Advisors
Greenhill & Co., LLC is serving as financial advisor and DLA
Piper LLP (US) is serving as legal counsel to TherapeuticsMD.
About TherapeuticsMD, Inc.
TherapeuticsMD, Inc. is an innovative, leading healthcare
company, focused on developing and commercializing novel products
exclusively for women. TherapeuticsMD’s products are designed to
address the unique changes and challenges women experience through
the various stages of their lives with a therapeutic focus in
family planning, reproductive health, and menopause management.
TherapeuticsMD is committed to advancing the health of women and
championing awareness of their healthcare issues. To learn more
about TherapeuticsMD, please visit https://www.therapeuticsmd.com/
or follow us on Twitter: @TherapeuticsMD and on Facebook:
TherapeuticsMD.
Cautionary Notes Regarding Forward Looking Statements
This press release contains forward-looking statements.
Forward-looking statements may include, but are not limited to,
statements relating to the Company’s objectives, plans and
strategies as well as statements, other than historical facts, that
address activities, events or developments that the company
intends, expects, projects, believes or anticipates will or may
occur in the future. These statements are often characterized by
terminology such as “believes,” “hopes,” “may,” “anticipates,”
“should,” “intends,” “plans,” “will,” “expects,” “estimates,”
“projects,” “positioned,” “strategy” and similar expressions and
are based on assumptions and assessments made in light of
management’s experience and perception of historical trends,
current conditions, expected future developments and other factors
believed to be appropriate. Forward-looking statements in this
press release are made as of the date of this press release, and
the Company undertakes no duty to update or revise any such
statements, whether as a result of new information, future events
or otherwise. Forward-looking statements are not guarantees of
future performance and are subject to risks and uncertainties, many
of which are outside of the Company’s control. Important factors
that could cause actual results, developments and business
decisions to differ materially from forward-looking statements are
described in the sections titled “Risk Factors” in the Company’s
filings with the Securities and Exchange Commission, including its
most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q, as well as Current Reports on Form 8-K, and include the
following: whether the company will be able to refinance the
indebtedness under its term loan facility, and, if not, whether the
Company will be able to continue as a going concern; whether the
Company will be able to raise capital to fund its operations; the
effects of the COVID-19 pandemic; the Company’s ability to maintain
or increase sales of its products; the Company’s ability to develop
and commercialize IMVEXXY®, ANNOVERA®, and BIJUVA® and obtain
additional financing necessary therefor; the effects of supply
chain issues on the supply of the Company’s products; the potential
of adverse side effects or other safety risks that could adversely
affect the commercialization of the company’s current or future
approved products or preclude the approval of the Company’s future
drug candidates; the Company’s ability to protect its intellectual
property; the length, cost and uncertain results of future clinical
trials; the Company’s reliance on third parties to conduct its
manufacturing, research and development and clinical trials; the
ability of the Company’s licensees to commercialize and distribute
the Company’s products; the ability of the Company’s marketing
contractors to market ANNOVERA; the availability of reimbursement
from government authorities and health insurance companies for the
Company’s products; the impact of product liability lawsuits; the
influence of extensive and costly government regulation; the impact
of leadership transitions; the volatility of the trading price of
the Company’s common stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220801005279/en/
Lisa M. Wilson In-Site Communications, Inc. 212-452-2793
lwilson@insitecony.com
TherapeuticsMD 561-961-1900 IR@TherapeuticsMD.com
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