Medexus’s 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’s balance sheet, providing additional operating liquidity
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 agented by MidCap Funding IV Trust (MidCap). Among other things, the amendment provides for a US$5.0 million increase in MidCap’s revolving loan commitment amount on substantially the same terms provided under the existing facility. Following the amendment, Medexus will have total borrowing capacity under the revolving credit facility of US$25.0 million subject to the borrowing base.
“We are pleased to extend our strong partnership with MidCap and bolster our liquidity position as we head into this upcoming quarter,” commented Marcel Konrad, Chief Financial Officer of Medexus. “We appreciate our lenders’ support as we continue to focus on delivering strong revenue growth and improved overall performance across our portfolio of products in both the United States and Canada.”
In connection with the amendment, Medexus also issued to MidCap warrants to purchase 135,710 common shares of Medexus, with an exercise price equal to the five-day volume-weighted average price on the Toronto Stock Exchange calculated as of September 29, 2022, and amended MidCap’s outstanding warrants to purchase 134,290 shares to reduce the exercise price to reflect that same five-day volume-weighted average price. The newly-issued warrants and the amendments to the existing warrants will become effective on October 13, 2022, being 10 business days after the date of this announcement. The warrants will be exercisable until the maturity of the loans outstanding under Medexus’s credit facilities with MidCap, which is expected to occur in July 2023 unless extended in accordance with the terms of the facilities.
About Medexus
Medexus is a leader in innovative rare disease treatment solutions with a strong North American commercial platform and a portfolio of proven best-in-class products. Our current focus is on the therapeutic areas of hematology, auto-immune diseases, and allergy. We continue to build a highly differentiated company with a growing portfolio of innovative and high-value orphan and rare disease products that will underpin our growth for the next decade.
Our current leading products are IXINITY®, an intravenous recombinant factor IX therapeutic for use in patients 12 years of age or older with Hemophilia B (a hereditary bleeding disorder characterized by a deficiency of clotting factor IX in the blood, which is necessary to control bleeding); Rasuvo™ and Metoject®, a unique formulation of methotrexate (auto-pen and pre-filled syringe) designed to treat rheumatoid arthritis and other auto-immune diseases; and Rupall®, an innovative prescription allergy medication with a unique mode of action. We also hold exclusive US and Canadian rights to commercialize Gleolan™ (aminolevulinic acid hydrochloride or ALA HCl), an FDA-approved, orphan drug designated optical imaging agent currently indicated in patients with glioma (suspected World Health Organization Grades III or IV on preoperative imaging) as an adjunct for the visualization of malignant tissue during surgery.
We have also licensed treosulfan, part of a preparative regimen for allogeneic hematopoietic stem cell transplantation to be used in combination with fludarabine, for commercialization 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 the subject of a regulatory review process with the U.S. Food and Drug Administration.
Our mission is to provide the best healthcare products to healthcare professionals and patients. We strive to deliver on this mission by acting on our core values: Quality, Innovation, Customer Service, and Collaboration.
Contacts
For more information, please contact any of the following:
Medexus
Ken d’Entremont, Chief Executive Officer
Medexus Pharmaceuticals
Tel: 905-676-0003
Email: ken.dentremont@medexus.com
Marcel Konrad, Chief Financial Officer
Medexus Pharmaceuticals
Tel: 312-548-3139
Email: marcel.konrad@medexus.com
Investor Relations
Victoria Rutherford
Adelaide Capital
Tel: 480-625-5772
Email: victoria@adcap.ca
Forward-Looking Statements
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”, “plans”, “potential”, and similar words or expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements contained in this news release include, but are not limited to, statements regarding Medexus’s business strategy, outlook, and other expectations regarding financial or operational performance; Medexus’s expectations regarding availability of funds from operations, cash flow generation, and capital allocation; and Medexus’s anticipated cash needs, capital requirements, and needs for additional financing. 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. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. Medexus cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Material risk factors include those set out in Medexus’s materials filed with the Canadian securities regulatory authorities from time to time, including Medexus’s most recent annual information form and management’s discussion and analysis; future capital requirements and dilution; intellectual property protection and infringement risks; competition (including potential for generic competition); reliance on key management personnel; Medexus’s ability to implement its business plan; Medexus’s ability to leverage its U.S. and Canadian infrastructure to promote additional growth; regulatory approval by relevant health authorities, including the FDA; product reimbursement by third party payers; litigation or expiry with respect to patents or other intellectual property rights; litigation risk; stock price volatility; government regulation; and potential third party claims. Given these risks, undue reliance should not be placed on these forward-looking statements, which are made only as of the date hereof. Other than as specifically required by law, Medexus undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.
