Medexus Announces US$20 Million Asset-Based Credit Facility and Repays US$10 Million of its Term Loan
May 07 2020 - 5:00PM
Medexus Pharmaceuticals Inc. (the “Company” or
“Medexus”) (TSX-V: MDP, OTCQB: PDDPF) today announced that
the Company has entered into a definitive credit agreement with a
syndicate of lenders agented by MidCap Financial Trust (“MidCap
Financial”) in respect of a secured asset-based revolving credit
facility having a term of 38 months (the “ABL Facility”).
The ABL Facility features a US$20 million
revolving commitment (subject to the borrowing base) and an
uncommitted US$10 million accordion. Borrowings under the ABL
Facility bear interest at a rate of one-month LIBOR plus 3.95%,
subject to a LIBOR floor of 1.50%. Interest is payable monthly in
arrears on the first business day of each month. The Company and
each of its subsidiaries are the borrowers under the ABL Facility
(each, a “Borrower” and collectively, the “Borrowers”), and each
Borrower is jointly and severally liable for the obligations of
each other Borrower under the ABL Facility.
The initial advance under the ABL Facility has
been used by the Company to repay US$10 million of the principal
amount outstanding under the US$20 million secured term loan
entered into by the Borrowers on February 28, 2020 (the “Term
Loan”). The interest rate on amounts outstanding under the ABL
Facility is 255 basis points lower than that of the Term Loan.
After such repayment, approximately US$10 million principal amount
remains outstanding under the Term Loan.
The ABL Facility is secured by a first-priority
security interest from each Borrower on all of its present and
after-acquired personal property and is subject to an intercreditor
agreement with MidCap Financial, in its capacity as administrative
agent under the Term Loan.
Ken d’Entremont, Chief Executive Officer of the
Company, commented: “We are very pleased to enter into this credit
agreement led by MidCap Financial as it further improves our
liquidity and enhances our financial flexibility. We believe
our ability to secure such favourable terms, including an interest
rate significantly lower than that of the Term Loan, reflects the
confidence of our lenders and the strength of our business. The
cash flow from our strong organic growth and recent accretive
acquisition makes debt an attractive option to ensure liquidity
while minimizing dilution to maximize shareholder value.”
About Medexus Pharmaceuticals
Inc.
Medexus is a leading specialty pharmaceutical
company with a strong North American commercial platform. The
Company’s vision is to provide the best healthcare products to
healthcare professionals and patients, through our core values of
Quality, Innovation, Customer Service and Teamwork. Medexus
Pharmaceuticals is focused on the therapeutic areas of auto-immune
disease, hematology and allergy. The Company’s leading products
are: Rasuvo™ and Metoject®, a unique formulation of methotrexate
(auto-pen and pre-filled syringe) designed to treat rheumatoid
arthritis and other auto-immune diseases; IXINITY®, an intravenous
recombinant factor IX therapeutic for use in patients 12 years of
age or older with Hemophilia B – a hereditary bleeding disorder
characterized by a deficiency of clotting factor IX in the blood,
which is necessary to control bleeding; and Rupall®, an innovative
prescription allergy medication with a unique mode of action.
For further information, please
contact:Ken d’Entremont, Chief Executive OfficerMedexus
Pharmaceuticals Inc.Tel: 905-676-0003E-mail:
ken.dentremont@medexus.com
Roland Boivin, Chief Financial OfficerMedexus
Pharmaceuticals Inc.Tel: 514-762-2626 ext. 202E-mail:
roland.boivin@medexus.com
Investor Relations
(U.S.):Crescendo Communications, LLCTel:
+1-212-671-1020E-mail: mdp@crescendo-ir.com
Investor Relations
(Canada):Frank CandidoDirect Financial Strategies and
Communication Inc.Tel: 514-969-5530E-mail:
frank.candido@medexus.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward Looking Statements
Certain statements made in this press release
contain forward-looking information within the meaning of
applicable securities laws (“forward-looking
statements”). The words “anticipates”, “believes”,
“expects”, “will”, “plans” and similar expressions are often
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words.
Specific forward-looking statements contained in this news release
include, but are not limited to, statements with respect to the
impact of the ABL Facility on the Company’s liquidity and financial
flexibility and the strength of the Company’s business as reflected
by the terms of the ABL Facility. These statements are based on
factors or assumptions that were applied in drawing a conclusion or
making a forecast or projection, including assumptions based on
historical trends, current conditions and expected future
developments. Since forward-looking statements relate to future
events and conditions, by their very nature they require making
assumptions and involve inherent risks and uncertainties. The
Company cautions that although it is believed that the assumptions
are reasonable in the circumstances, these risks and uncertainties
give rise to the possibility that actual results may differ
materially from the expectations set out in the forward-looking
statements. Material risk factors include: future capital
requirements and dilution; intellectual property protection and
infringement risks; competition (including potential for generic
competition); reliance on key management personnel; the Company’s
ability to implement its business plan; the Company’s ability to
leverage its United States and Canadian infrastructure to promote
additional growth, including with respect to the infrastructure of
Medexus Inc., Medac Pharma, Inc. and Aptevo BioTherapeutics LLC and
the potential benefits the Company expects to derive therefrom;
regulatory approval by the Canadian and United States health
authorities; product reimbursement by third party payers; patent
litigation or patent expiry; litigation risk; stock price
volatility; government regulation; potential third party claims;
risks related to the COVID-19 pandemic and any other risk factors
set out in the Company’s most recent MD&A under the heading
“Risk Factors and Risk Management” and elsewhere in the Company’s
other disclosure documents filed with the applicable Canadian
securities regulators from time to time. With respect to the
COVID-19 pandemic, third parties on which the Company relies,
including its manufacturers, suppliers, licensors and/or
distributors, have operations around the world and are exposed to a
number of global and regional risks outside of the Company’s
control, including but not limited to those related to the COVID-19
pandemic. As the COVID-19 pandemic continues or increases in
severity or results in expanded or prolonged travel, commercial or
other restrictions, it could adversely impact the Company by
causing operating, supply or other disruptions, including creating
difficulties in the execution of the Company’s marketing plans. In
addition, liquidity and volatility, credit availability and market
and financial conditions generally could change at any time as a
result. Any of these events, in isolation or in combination, could
materially and adversely affect the Company’s business and could
have a material adverse effect on the Company and its financial
results. Given these risks, undue reliance should not be placed on
these forward-looking statements, which apply only as of the date
hereof. Other than as specifically required by law, the Company
undertakes no obligation to update any forward-looking statements
to reflect new information, subsequent or otherwise.
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