Acerus Pharmaceuticals, a specialty pharmaceutical company focused on the commercialization and development of prescription products with a primary focus in the fields of urology and men’s health, entered into an amending agreement with First Generation Capital, a company affiliated with the chairman of the board of directors of Acerus, to increase its existing secured loan facility from $35.8 million to $37.9 million. This increase was made available to the company by way of a single advance of $2.1 million on June 23 under a secured grid promissory note with First Generation.
The loan facility bears interest at a rate of 8% per annum and is repayable in full on Dec. 31, 2024 but can be prepaid in full or in part without penalty. The proceeds from the loan facility will be used for ongoing general working capital.
In light of First Generation’s relationship to the chairman of the board of directors of Acerus, the independent members of the board of directors, led by the lead independent director, separately met to consider and discuss the amendment to the loan facility. Following the review of such independent members of the board of directors, it was unanimously determined that the entering into of the amendment to the loan facility was in the best interests of Acerus.
