Oxford Finance Provides Acura Pharmaceuticals Debt Financing
Acura Pharmaceuticals entered into a loan and security agreement with Oxford Finance, pursuant to which Oxford agreed to make a term loan to the company in the principal amount of $10 million.
The loan has a fixed interest rate of 8.35% per annum with interest only payment for the first 15 months and repayment of all principal and interest by December 1, 2018. In addition, at maturity or earlier termination, the company must pay Oxford an additional one-time interest payment of $795,000. As security for its obligations under the loan agreement, the company granted Oxford a security interest in substantially all of its existing and after-acquired assets, exclusive of its intellectual property assets.
The company may use the proceeds of the loan agreement for general working capital and to fund its business requirements.
Bob Jones, Acura president and CEO, said, “We are pleased to secure this financing on favorable terms which gives us more flexibility to advance multiple development candidates concurrently and expand our Nexafed® franchise.”
Acura Pharmaceuticals is a specialty pharmaceutical company engaged in the research, development and commercialization of product candidates intended to address medication abuse and misuse, utilizing its proprietary AVERSION® and IMPEDE® technologies.