TORONTO, March 31, 2022 (GLOBE NEWSWIRE) — Acerus Pharma Corporation (the “Company” Where “Polled”) (TSX:ASP; OTCQB:ASPCF) announced today that it has entered into an amending agreement with First Generation Capital Inc. (“first generation”), an affiliate of the Chairman of the Board of Acerus1to augment its existing secured loan facility (the “Loan facility”) from $30.845 million to $35.845 million. Such increase will be made available to the Company by means of one or more advances under a network guaranteed promissory note with First Generation, provided such advance is paid by April 30, 2022.
The loan facility bears interest at the rate of eight percent (8%) per annum and is repayable in full on December 31, 2024, but may be prepaid in whole or in part without penalty. Proceeds from the loan facility will be used for permanent general working capital.
In light of First Generation’s relationship with the Chairman of Acerus’ Board of Directors, the independent members of the Board of Directors, led by the Lead Independent Director, met separately to review and discuss the change in the loan facility. Following review by these independent members of the Board of Directors, it was unanimously determined that entering into the Loan Facility Amendment was in the best interest of Acerus.
Acerus Pharmaceuticals Corporation is a specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that enhance the patient experience, with a particular focus on the area of men’s health. The Company markets its products through its own sales force in the United States and Canada, and through a worldwide network of authorized distributors in other territories.
Acerus shares trade on the TSX under the symbol ASP and on the OTCQB under the symbol ASPCF. For more information, visit www.aceruspharma.com and follow us on Twitter and LinkedIn.
Notice Regarding Forward-Looking Statements
Information contained in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. This information implicitly contains assumptions regarding our future operating results. These assumptions, although considered reasonable by the company at the time of their preparation, may prove to be incorrect. Readers are cautioned that the actual performance of the Company is subject to a number of risks and uncertainties, including with respect to the use of proceeds from the Loan Facility, the anticipated benefits of the Loan Facility and the the Company’s ability to meet its obligations under the Facility Loan Facility, and could differ materially from what is currently expected, as discussed above. For more complete information on these risks and uncertainties, you should refer to our annual information form dated March 14, 2022 available on www.sedar.com. The forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe to be reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely on such information as of any other date. Although we may choose to do so, we are under no obligation and do not undertake to update this information at any time, whether as a result of new information, future events or otherwise, unless applicable securities laws require it.
(1) No material change report was filed at least 21 days prior to the closing of the loan facility amendment by First Generation, as the terms of these arrangements were not yet finalized at that time.
Acerus Investor Relations