Acerus Pharmaceuticals has entered into a $5 million subordinated secured term loan facility with First Generation Capital, a company affiliated with the chairman of the board of directors of Acerus.
The loan is subordinated to the existing $9 million facility with SWK Funding and bears interest at a rate per annum equal to the three-month LIBOR plus an applicable margin of 10.50%. Subject to the terms of the subordination and intercreditor agreement between First Generation and SWK, the loan is repayable in full on December 31, 2020, is interest-only until maturity with regularly scheduled payments of interest to First Generation being permitted subject to certain conditions related to Acerus’ market capitalization and aggregate annual revenue, and can be prepaid in full or in part without penalty following repayment in full of indebtedness owing to SWK.
The proceeds from the loan will be used for ongoing general working capital.
Acerus Pharmaceuticals is a Canadian-based specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that improve patient experience, with a primary focus in the field of men’s health.
