Acura obtains $800,000 bridge funding

New York, May 24 - Acura Pharmaceuticals, Inc. said it obtained $800,000 of bridge funding.

The term loan is 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 loan matures on Sept. 1, 2006 and carries interest at 10%. It is secured by a lien on all the assets of the company and its subsidiary and is senior to all other debt.

Acura also said it has postponed all the other bridge loans previously due June 1 to Sept. 1, 2006.

In total, $4.85 million of bridge loans are now due on Sept. 1, 2006.

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

Acura added that its current cash reserves, including the proceeds from the latest loan, will fund product development and licensing activities through June.

To continue operating after that it will need additional financing or to enter into collaboration agreements.

The Palatine, Ill., specialty pharmaceutical company previously warned in April that its cash would run out in mid-May and in February that it would run out in March.

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