Investors Oxford Finance, Silicon Valley also receive 193,798 warrants
By Devika Patel
Knoxville, Tenn., Oct. 20 – Apricus Biosciences, Inc. arranged a $10 million term loan agreement with lenders Oxford Finance LLC and Silicon Valley Bank on Oct. 17, according to an 8-K filed Monday with the Securities and Exchange Commission. It has already raised $5 million and will complete a second $5 million term loan by April 30.
The two loans accrue interest at a rate equal to the greater of 7.95% or Libor plus 772 basis points, with the first loan accruing a coupon of 7.95%. The loan matures on Oct. 1, 2018.
The loan may be prepaid with penalties ranging from 1% to 3%.
The investors also received warrants for 193,798 shares, which are exercisable at $1.29 for 10 years. The strike price is identical to the Oct. 16 closing share price. Oxford and Silicon may receive a further 5% of warrant coverage with the second term loan, and those warrants will be exercisable at a price equal to the lower of the closing price per share on the day preceding the second term loan or the 10-day average closing price per share preceding the second term loan.
The lenders also received a $100,000 facility fee.
Proceeds will be used to pay off debt and for working capital and general business purposes.
Apricus is a pharmaceutical research and development company based in San Diego.
| Issuer: | Apricus Biosciences, Inc.
|
| Issue: | Term loan
|
| Amount: | $10 million
|
| Maturity: | Oct. 1, 2018
|
| Coupon: | The greater of 7.95% or three month Libor plus 772 bps (for $5 million), 7.95% (for $5 million)
|
| Call: | With penalties ranging from 1% to 3%
|
| Warrants: | For 193,798 shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $1.29
|
| Investors: | Oxford Finance LLC and Silicon Valley Bank
|
| Fees: | $100,000
|
| Settlement date: | Oct. 17
|
| Stock symbol: | Nasdaq: APRI
|
| Stock price: | $1.29 at close Oct. 16
|
| Market capitalization: | $57.72 million
|
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