Daily News: December 7, 2017

Quantius Provides $3.90MM Facility to Acerus

Acerus Pharmaceuticals entered into a senior secured term credit facility with Quantius for up to C$5 million ($3.9 million) of which C$3 million ($2.34 million) was available at closing, with the remaining $2 million ($1.56 million) becoming available upon satisfaction of certain future conditions.

The conditions include the company’s U.S. Partner for NATESTO achieving a set number of prescriptions per month, and maintaining ESTRACE sales at a set minimum level.

The credit facility bears interest at a rate equivalent to the Bank of Canada prime plus 11.05% and matures on December 1, 2019. As part of the transaction, Quantius will receive an underwriting fee representing a low single digit percentage of the maximum facility amount and a royalty fee representing a low single digit percentage of the company’s revenues over the term of the facility capped at a high single digit percentage of the borrowed amount.

Under terms of the agreement, the company will have the option to prepay the loan with the payment of low single digit prepayment penalties, which will be fully offset against the royalty fee. The terms of the agreement also contain customary financial covenants.

The funds will be used primarily to support sales, marketing and new product development efforts.

“We are pleased to be working with Quantius, who are providing valuable support during this important growth period. This non-dilutive financing is a good way to supplement our cash position at this time,” said Ken Yoon, CFO of Acerus. “The facility will allow us to continue our efforts to grow NATESTO sales in Canada and to support the launch of GYNOFLOR, if approved by Health Canada,” said Luc Mainville, interim CEO of Acerus.

Acerus Pharmaceuticals is a Canadian-based specialty pharmaceutical company focused on the development, manufacture, marketing and distribution of products that improve patient experience.

Quantius is a Toronto-based commercial lender.