Acura secures $489,000 bridge funding

By Elaine Rigoli

Tampa, Fla., Sept. 22 - Acura Pharmaceuticals, Inc. said it has secured gross proceeds of $489,000 under a term loan agreement with Essex Woodlands Health Ventures V, LP, Care Capital Investments II, LP, Care Capital Offshore Investments II, LP, Galen Partners III, LP, Galen Partners International III, LP and Galen Employee Fund III, LP.

The lenders have agreed to change the maturity date on all previous bridge loans to Nov. 1, 2006 from Oct. 1, 2006.

The loan bears an annual interest rate of 10%, is secured by a lien on all assets of Acura and its subsidiary, matures on Nov. 1, 2006 and is senior to all other Acura debt. The loan permits the funding of additional cash amounts subject to agreement by Acura and the lenders.

The Palatine, Ill.-based pharmaceutical company has a total of $6.124 million in bridge loans outstanding and due on Nov. 1, 2006, and Acura has agreed that the lenders under its bridge loan agreements may rollover all or any portion of the principal and accrued interest outstanding under loans made under such agreements into Acura's next equity financing of at least $10 million, subject to certain exceptions.

Acura said it will use the net proceeds from the loan to continue funding product development and licensing activities relating to OxyADF tablets and other product candidates utilizing its Aversion technology.

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