GE Healthcare Completes $7.5 Million for Trimel Pharmaceuticals
Trimel Pharmaceuticals Corporation and its subsidiaries have entered into a loan and security agreement with GE Capital, Healthcare Financial Services, as agent for the lenders party thereto, pursuant to which GE Capital will advance U.S.$7.5 million to the corporation. The company intends to use the net proceeds from the loan for general corporate purposes.
According to the loan agreement, the loan accrues interest at 10.75% per year and is repayable in scheduled installments through to July 1, 2015 (subject to repayment on demand at any time should certain customary events of default occur). As is customary, the corporation has granted security over the assets of the Corporation and its subsidiaries. In connection with the transaction, the lenders under the loan agreement (or certain of their affiliates) have been issued warrants exercisable for an aggregate of 154,916 common shares of the Corporation and certain brokers have been issued warrants exercisable for an aggregate of 51,639 common shares of the corporation. The warrants are exercisable for five years at an exercise price calculated using the volume weighted average trading price of the corporation’s common shares on the Toronto Stock Exchange for the period of five days ending immediately prior to the completion of the Loan.
“The funding received today from GE Capital, in addition to the $13.2 million in gross proceeds associated with the equity offering announced yesterday, significantly strengthens Trimel’s financial position and balance sheet,” commented Bruce Brydon, Trimel’s chairman and CEO. “We believe that Trimel is well positioned to drive the execution of its business plan, particularly as it relates to the ongoing CompleoTRT and Tefina clinical trials.”
Trimel Pharmaceuticals Corporation develops medications for female sexual health and conditions relating to aging and well-being.