Medexus’ borrowing capacity under its revolving credit facility increases by
US$5.0 million, from US$20.0 million to US$25.0 million
Transaction Strengthens Medexus Balance Sheet, Providing Additional Operating Cash
TORONTO and CHICAGO, Sept. 29, 2022 (GLOBE NEWSWIRE) — Medexus Pharmaceuticals (Medexus) (TSX: MDP) (OTCQX: MEDXF) today entered into an amendment to the company’s revolving credit facility with a syndicate of lenders represented by MidCap Funding Trust IV (MidCap). Among other things, the amendment provides for an increase of US$5.0 million in the amount of MidCap’s revolving loan commitment on substantially the same terms as the existing facility. Following the amendment, Medexus will have a total borrowing capacity under the revolving credit facility of US$25.0 million subject to the borrowing base.
“We are delighted to extend our strong partnership with MidCap and strengthen our liquidity position as we head into this next quarter,” commented Marcel Konrad, Chief Financial Officer of Medexus. “We appreciate the support of our lenders as we continue to focus on strong revenue growth and improving the overall performance of our product portfolio in the United States and Canada. »
As part of the amendment, Medexus also issued warrants to MidCap to purchase 135,710 common shares of Medexus, with an exercise price equal to the five-day volume-weighted average trading price on the Exchange. of Toronto calculated as of September 29, 2022, and amended MidCap’s outstanding warrants to purchase 134,290 shares to reduce the exercise price to reflect this same five-day volume-weighted average price. The newly issued warrants and amendments to existing warrants will become effective on October 13, 2022, 10 business days after the date of this announcement. The warrants will be exercisable until the maturity of outstanding loans under Medexus’ credit facilities with MidCap, which is expected to occur in July 2023, unless extended in accordance with the terms of the facilities.
Medexus is a leader in innovative rare disease treatment solutions with a strong North American commercial platform and a portfolio of best-in-class proven products. We are currently focusing on the therapeutic areas of hematology, autoimmune diseases and allergies. We continue to build a highly differentiated business with a growing portfolio of innovative, high-value orphan and rare disease products that will support our growth for the next decade.
Our current lead products are IXINITY®, an intravenous recombinant factor IX therapeutic agent for patients 12 years of age or older with hemophilia B (an inherited bleeding disorder characterized by a deficiency of coagulation factor IX in the blood, which is necessary to control bleeding); Rasuvo™ and Metoject®, a unique formulation of methotrexate (automatic pen and pre-filled syringe) designed to treat rheumatoid arthritis and other autoimmune diseases; and Rupall®, an innovative prescription allergy medication with a unique mode of action. We also have exclusive U.S. and Canadian rights to commercialize Gleolan™ (aminolevulinic acid hydrochloride or ALA), an FDA-approved orphan drug designated optical imaging agent currently indicated in patients with glioma (presumed grade III or IV of the World Health Organization on Preoperative Imaging) as an adjunct for visualization of malignant tissue during surgery.
We have also approved the marketing of treosulfan, which is part of a preparatory regimen for allogeneic hematopoietic stem cell transplantation, in combination with fludarabine, in the United States and Canada. Treosulfan was approved by Health Canada in June 2021 and is marketed in Canada as Trecondyv®. Treosulfan is currently undergoing a regulatory review process with the United States Food and Drug Administration.
Our mission is to provide the best healthcare products to healthcare professionals and patients. We strive to fulfill this mission by acting on our core values: quality, innovation, customer service and collaboration.
For more information, please contact one of the following:
Ken d’Entremont, General Manager
Email: [email protected]
Marcel Konrad, CFO
Email: [email protected]
Capital of Adelaide
Email: [email protected]
Certain statements made in this press release contain, and statements made in the webcast discussed in this press release may contain, forward-looking information within the meaning of applicable securities laws (forward-looking statements). The words “anticipates”, “believes”, “expects”, “will”, “projects”, “potential” and similar words or expressions are often intended to identify forward-looking statements, although not all forward-looking statements not contain these identifying words. Specific forward-looking statements contained in this press release include, but are not limited to, statements regarding Medexus’ business strategy, prospects and other expectations regarding financial or operational performance; Medexus’ expectations regarding the availability of funds from operations, cash flow generation and capital allocation; and Medexus’ anticipated cash requirements, capital requirements and additional financing requirements. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Because forward-looking statements relate to future events and conditions, by their very nature they require assumptions to be made and involve inherent risks and uncertainties. Medexus cautions that although the assumptions are believed to be reasonable under the circumstances, these risks and uncertainties give rise to the possibility that actual results could differ materially from the expectations set forth in the forward-looking statements. Material risk factors include those set forth in Medexus’ documents filed with Canadian securities regulators from time to time, including Medexus’ most recent Annual Information Form and MD&A; future capital requirements and dilution; the protection of intellectual property and the risks of counterfeiting; competition (including the potential for generic competition); dependence on key management personnel; Medexus’ ability to implement its business plan; Medexus’ ability to leverage its US and Canadian infrastructure to drive additional growth; regulatory approval by relevant health authorities, including the FDA; reimbursement of products by third-party payers; litigation or expiration relating to patents or other intellectual property rights; litigation risk; stock price volatility; government regulation; and potential third party claims. In view of these risks, undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof. Except as specifically required by law, Medexus undertakes no obligation to update forward-looking statements to reflect new information, whether subsequent or not.