Tribute Pharmaceuticals Announces Acquisition of US Rights to Fibricor® and Completion of $12 Million Private Placement

Tribute Pharmaceuticals Canada Inc. (TSXV:TRX,OTCMKTS:TBUFF) announced that its wholly owned subsidiary Tribute Pharmaceuticals International Inc., a Barbados corporation, has acquired the U.S. rights to Fibricor®. The company also announced the completion of a private placement which included the sale of  13,042,695 common shares at a price of C$0.92 for aggregate gross proceeds of C$12,000,199.40.

As quoted in the press release:

Financial terms of the deal include the payment of US$10 million as follows: US$5 million on closing; US$2 million payable 6 months from closing; and, US$3 million payable 12 months from closing. Sales of the Product during the twelve month period ending April 30, 2015 were approximately US$4.7 million.

Fibricor® is indicated as adjunctive therapy to diet for treatment of severe hypertriglyceridemia (TG ≥ 500 mg/dL) and as adjunctive therapy to diet to reduce elevated low-density lipoprotein cholesterol (LDL-C), total cholesterol (Total-C), triglycerides (TG), and apolipoprotein B (Apo B), and to increase high-density lipoprotein cholesterol (HDL-C) in patients with primary hypercholesterolemia or mixed dyslipidemia.

Fibricor® is a unique and patent protected fenofibric acid formulation that competes in the ~US$2.5 billion triglyceride lowering medication market. Fibricor® contains the lowest dose of fenofibric acid or fenofibrate available in the U.S., consisting of 105mg and 35mg tablet presentations. The Product is protected by four patents extending out to August 20, 2027.

In connection with the Fibricor® acquisition Tribute completed a private placement (the “Offering”) pursuant to which it issued 13,043,695 common shares at a price of Cdn$0.92 per share for aggregate gross proceeds of C$12,000,199.40. The Offering was conducted on a best efforts basis by a syndicate of agents led by Dundee Securities Ltd. and including KES 7 Capital Inc., and Bloom Burton & Co. Ltd. (together the “Agents”).

In connection with the Offering, the Agents received a cash commission equal to 7.0% of the gross proceeds of the Offering (the “Commission”). In addition, the Company granted the Agents, on the closing of the Offering, non-transferable compensation options (the “Compensation Options”) to acquire that number of Common Shares equal to 3.5% of the aggregate number of Common Shares issued pursuant to the Offering. The Compensation Options are exercisable for a period of 24 months from the closing of the Offering at an exercise price that is equal to the issue price of the Common Shares under the Offering.

The proceeds of the Offering will be used to fund the Fibricor® acquisition and for general working capital purposes.

Rob Harris, president and CEO of Tribute, commented:

We are very pleased with these events for a multitude of reasons. The Fibricor® acquisition marks Tribute’s commercial entrance into the U.S. market. Fibricor® provides Tribute with an approved, marketed product currently generating revenues and competing in a multi-billion dollar market, which we intend to use as a platform for building our U.S. commercial infrastructure. Most importantly, the acquisition of Fibricor® is immediately accretive.

Click here to read the full Tribute Pharmaceuticals Canada Inc. (TSXV:TRX,OTCMKTS:TBUFF) press release.