- Maturity Dates of the Line of Credit and Long-Term (OID)
Loans extended to September
2024
- One of a number of measures underway to extend cash
runway
- Significant reduction in R&D costs of up to $30 million in 2019
LAVAL, QC, Nov. 14, 2018 /CNW Telbec/ - Prometic
Life Sciences Inc. (TSX: PLI) (OTCQX: PFSCF)
("Prometic" or the "Corporation") announced today
that it has closed the transaction previously disclosed on
October 29, 2018 with Structured
Alpha LP (SALP), an affiliate of Peter J.
Thomson's investment firm, Thomvest Asset Management Inc.,
extending the maturity dates of its USD $80
million (CAD $100 million)
line of credit and Original Issue Discount Notes (collectively the
"Debt") to September 2024.
"As previously stated, the extension of the maturity dates of
the Debt is part of a series of initiatives being pursued to extend
our cash runway to enable us to close the gap between the
fundamental enterprise value we have built and our current market
valuation", said Pierre Laurin,
Prometic's President and CEO. "Having successfully completed our
pivotal phase 3 clinical programs for IVIG and Ryplazimâ„¢
(plasminogen), we will be making a significant reduction in R&D
costs of up to $30 million in 2019
compared to this year. The combination of additional
cost-control measures and expected growth in revenues in 2019 will
further contribute to reducing Prometic's burn rate going
forward. We will also further strengthen our financial
position through the closing of commercial partnerships and
equity-related initiatives".
The Transaction reflects the terms previously disclosed by
Prometic. As a result of the transaction, the maturity dates of the
Debt have been extended to September
2024. Interest will continue to be paid quarterly on the
Line of Credit. There will be no additional interest charges in
relation to the Original Issue Discount Notes until their original
maturity date of July 31, 2022. As of
July 31, 2022, said notes will be
restructured into cash paying loans bearing an annual interest rate
of 10%.
As previously disclosed, as part of the consideration for the
extension of the maturity dates for the Debt, Prometic will cancel
100,117,594 existing warrants and grant new warrants to SALP,
bearing a term of 8 years and exercisable at a per share price
equal to $1.00. The exact number of
warrants to be granted will be set at a number that will result in
SALP having a 19.99% fully-diluted ownership level in Prometic upon
grant of the warrants to be completed no later than December 27, 2018.
About Thomvest Asset Management Inc. And Structured Alpha
LP
Thomvest Asset Management Inc. is a Toronto-based investment management firm
controlled by Peter J. Thomson.
Structured Alpha LP is an affiliate of Thomvest Asset Management
Inc. that makes structured investments in companies that leverage
disruptive technologies and business models to pursue high-growth
commercial opportunities. We are committed to the success of our
entrepreneur partners. The capital we invest is our own, enabling
us to be more creative, flexible, strategic and patient than most
investors. It takes time to build great companies and Thomvest and
its affiliates are committed to supporting its entrepreneurs
throughout their journey. To learn more about Thomvest, please
visit us at www.thomvest.com.
About Prometic Life Sciences Inc.
Prometic (www.prometic.com) is a publicly traded (TSX symbol:
PLI) (OTCQX symbol: PFSCF) biopharmaceutical corporation with two
drug discovery platforms focusing on unmet medical needs. The first
platform (small molecule therapeutics) stems from the discovery of
two receptors which we believe are at the core of how the body
heals: namely, promoting tissue regeneration and scar resolution as
opposed to fibrosis. One of the lead drug candidates emerging from
this platform, PBI-4050, is expected to enter pivotal phase 3
clinical trials for the treatment of Idiopathic Pulmonary Fibrosis
(IPF). The second drug discovery and development platform
(plasma-derived therapeutics) leverages Prometic's experience in
bioseparation technologies used to isolate and purify
biopharmaceuticals from human plasma. The Corporation's primary
goal with respect to this second platform is to address unmet
medical needs with therapeutic proteins not currently commercially
available, such as Ryplazimâ„¢ (plasminogen). We are also leveraging
this platform's higher recovery yield potential to advance
established plasma-derived therapeutics such as Intravenous
Immunoglobulin (IVIG). The Corporation also provides access to its
proprietary bioseparation technologies to enable pharmaceutical
companies in their production of non-competing biopharmaceuticals.
Recognized as a bioseparations expert, the Corporation derives
revenue from this activity through sales of affinity chromatography
media which contributes to offset the costs of its own R&D
investments.
We are headquartered in Laval, Quebec
(Canada) and have R&D facilities in Canada, the United
Kingdom ("UK") and the United
States ("USA"), manufacturing facilities in Canada and the Isle
of Man and corporate and business development activities in
Canada, the USA, and Europe.
Forward Looking Statements
This press release contains forward-looking statements about
Prometic's objectives, strategies and businesses that involve risks
and uncertainties. These statements are "forward-looking" because
they are based on our current expectations about the markets we
operate in and on various estimates and assumptions. Actual events
or results may differ materially from those anticipated in these
forward-looking statements if known or unknown risks affect our
business, or if our estimates or assumptions turn out to be
inaccurate. Such risks and assumptions include, but are not limited
to, Prometic's ability to develop, manufacture, and successfully
commercialize value-added pharmaceutical products, the availability
of funds and resources to pursue R&D projects, the successful
and timely completion of clinical studies, the ability of Prometic
to take advantage of business opportunities in the pharmaceutical
industry, uncertainties related to the regulatory process and
general changes in economic conditions. You will find a more
detailed assessment of the risks that could cause actual events or
results to materially differ from our current expectations in
Prometic's Annual Information Form for the year ended December 31, 2017 under the heading "Risk and
Uncertainties related to Prometic's business". As a result, we
cannot guarantee that any forward-looking statement will
materialize. We assume no obligation to update any forward-looking
statement even if new information becomes available, as a result of
future events or for any other reason, unless required by
applicable securities laws and regulations. All amounts are in
Canadian dollars unless indicated
otherwise.
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content:http://www.prnewswire.com/news-releases/prometic-closes-its-extension-of-debt-maturities-to-2024-300750508.html
SOURCE ProMetic Life Sciences Inc.