Knight Therapeutics, a Canadian specialty pharmaceutical company, has entered into a $10.5 million secured loan agreement with INTEGA Skin Sciences, a new Montreal-based skincare company focused on the treatment and care of skin diseases and their symptoms.
According to the agreement, Knight may extend up to $10.5 million of secured debt at a minimum interest rate of 13% per year and a term ranging from one to six years, $9 million to be disbursed at closing, $1 million upon INTEGA meeting certain financial targets and $500,000 at Knight’s option conditional on specified events.
Concurrent with the Knight loan, the Bloom Burton Healthcare Lending Trust invested $1.8 million by way of equity financing and unsecured convertible debt. As part of the transaction, Knight has been issued 8% of the fully-diluted common shares in the capital of INTEGA, plus other consideration. The proceeds will be used to support the acquisition of Valeant Groupe Cosméderme, which includes Laboratoire Dr. Renaud, Pro-Derm and Premiology, three high-end medical skincare brands, from Valeant Canada.
In conjunction with the secured loan, Knight has entered into an exclusive distribution, license and supply agreement to commercialize all INTEGA’s current and future products in Israel, Romania, Russia, sub-Saharan Africa and the Caribbean. Subject to conditions, Knight may also receive rights to certain future products in Canada.
“We are very excited to partner with Knight, a Canadian specialty pharma and active healthcare-specialized lender. Both Knight and INTEGA share the same goal of touching the lives of Canadians through our product offerings”, said Gregory Orleski, founder and CEO of INTEGA.