Emerald Health Sciences, the majority shareholder of Nemus Bioscience, provided a credit facility of up to $20 million to Nemus and shared an open market share purchase program of up to 10 million common shares.
Nemus Bioscience focuses on the development of bioengineered cannabinoid-based therapeutics to address global medical indications.
“This funding allows Nemus to launch its first human clinical trial in glaucoma for NB1111, while also securing the financial ability to rapidly develop its pipeline of proprietary cannabinoid prodrugs and analogs,” said Dr. Avtar Dhillon, of EHS. “We will continue to support the development of Nemus’ novel cannabinoid technology, especially as it relates to developing new formulations and delivery methods.”
The EHS facility will mature in October 2022, and Nemus can draw down on and repay the facility without penalty at its discretion. The coupon rate of the credit facility is 7% per annum. The facility provides EHS with an option to convert any outstanding debt at $0.40 per share. Nemus will also issue detachable warrants to EHS in connection with the credit agreement and provide certain registration rights. Issued warrants will allow EHS to purchase shares of Nemus, prorated at 50% of the equivalent value of common stock on an as-if-converted basis for each drawdown, with each warrant having an exercise price of $0.50 for a period of five years. The credit facility does not contain repricing provisions, other than for capital reorganizations.
EHS has also adopted an open market share purchase program of up to 10 million shares of Nemus common stock. EHS plans to undertake the open market purchases in compliance with the Company’s insider trading policy, industry best practices, and in compliance with U.S. securities laws. No shares have been purchased to date. Any transactions will be disclosed publicly through applicable filings with the SEC.
Nemus is a biopharmaceutical company, headquartered in Long Beach, CA, focused on the discovery, development, and commercialization of bioengineered cannabinoid-based therapeutics for significant unmet medical needs in global markets.
