Acerus Announces Amendment to Credit Agreement
TORONTO, March 26, 2021 (GLOBE NEWSWIRE) — Acerus Pharmaceuticals Corporation (“Acerus” or the “Company”) (TSX: ASP; OTCQB: ASPCF) today announced that it has entered into an amended agreement related to its existing credit facility with SWK Funding LLC (“SWK”), a subsidiary of SWK Holdings Corporation (Nasdaq: SWKH).
The nature of the amendments are to: i) set principal repayment at US$1.1 million for May 15, 2021 followed by quarterly principal repayments of US$600,000 effective August 15, 2021 and thereafter; ii) adjust the minimum threshold for Consolidated Unencumbered Liquid Assets (as defined in the credit facility as cash adjusted for certain portions of accounts receivable and accounts payable) required to be maintained by the Company at US$2.0 million effective May 15, 2021; iii) remove all revenue and Adjusted EBITDA covenants for the balance of 2021; and iv) adjust revenue and Adjusted EBITDA covenants for 2022 and onward.
All other terms and conditions in the SWK credit facility remain unchanged.
Acerus Pharmaceuticals Corporation 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. The Company commercializes its products via its own salesforce in the United States and Canada, and through a global network of licensed distributors in other territories. Acerus’ shares trade on TSX under the symbol ASP and on OTCQB under the symbol ASPCF. For more information, visit www.aceruspharma.com and follow us on Twitter and LinkedIn.
An updated version of the Company’s Corporate presentation is now available at www.aceruspharma.com.
Notice Regarding Forward-Looking Statements
Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties, including with respect to the Company’s ability to repay its debts and meet its financial covenants, and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 10, 2021 which is available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
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