Acerus Announces Closing of US$5 Million Secured Term Loan

Acerus Pharmaceuticals (TSX:ASP, OTCQB:ASPCF) has announced it has entered into a US$5 million subordinated secured term loan facility with First Generation Capital.

As quoted in the press release:

he Loan is subordinated to the existing US$9 million facility with SWK Funding LLC (“SWK”) and bears interest at a rate per annum equal to the three-month London Inter-Bank Offered Rate (“LIBOR”), plus an applicable margin of 10.50%. Subject to the terms of the subordination and intercreditor agreement between First Generation and SWK, the Loan is repayable in full on December 31, 2020, is interest-only until maturity with regularly scheduled payments of interest to First Generation being permitted subject to certain conditions related to Acerus’ market capitalization and aggregate annual revenue, and can be prepaid in full or in part without penalty following repayment in full of indebtedness owing to SWK. The proceeds from the Loan will be used for ongoing general working capital. A copy of the promissory note covering the loan will be filed under the Company’s profile on SEDAR at www.sedar.com.

Click here to read the full press release.