Variable-rate debt was sold with warrants for $600,000 of common stock
By Devika Patel
Knoxville, Tenn., Jan. 13 – Egalet Corp. said it settled a $15 million debt financing with Hercules Technology Growth Capital on Jan. 8.
The debt bears interest at a variable rate equal to the greater of 9.4% or 940 basis points over the Prime rate minus 325 bps. The debt matures on July 1, 2018.
Hercules also received warrants for $600,000 of common stock.
Proceeds will be used for the licensing and acquisition of two pain products from Acura Pharmaceuticals and Luitpold Pharmaceuticals.
The specialty pharmaceutical company is based in Wayne, Pa. It has agreed to license global rights to Oxaydo, or oxycodone HCI, USP, tablets, an immediate-release oxycodone product formulated to deter abuse via snorting. In addition, Egalet has acquired Sprix, or ketorolac tromethamine, nasal spray, a non-steroidal anti-inflammatory drug for the short-term management of pain.
“The license and acquisition of Oxaydo and Sprix, two approved innovative pain treatments, helps transform Egalet into a fully integrated specialty pharmaceutical company in advance of the approval of our highly differentiated, late-stage pipeline of abuse-deterrent, extended-release products,” president and chief executive officer Bob Radie said in a press release. “These products, an immediate-release opioid formulated to deter abuse and a nasal spray Nsaid delivering pain relief at an opioid level, are natural fits given our focus on providing patients treatment options for pain that may help deter abuse and misuse as well as accelerate our path to revenue generation and profitability.”
| Issuer: | Egalet Corp.
|
| Issue: | Debt with warrants
|
| Amount: | $15 million
|
| Maturity: | July 1, 2018
|
| Coupon: | Greater of 9.4% or 940 bps over the Prime rate minus 325 bps
|
| Conversion price: | $0.25
|
| Warrants: | For $600,000 of common stock
|
| Investor: | Hercules Technology Growth Capital
|
| Settlement date: | Jan. 8
|
| Stock symbol: | Nasdaq: EGLT
|
| Stock price: | $4.97 at close Jan. 7
|
| Market capitalization: | $80.45 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
