02 July 2018
$30 Million Credit Facility with Hercules Technology Growth Capital Secured to Support Intended Commercialisation of BARHEMSYS™ in the UK
Armagh, UK – 2 July 2018: Lan Chem Laboratories UK ("Lan Chem Laboratories", the "Company" or the "Group"), (EURONEXT: ACPH), a hospital pharmaceutical company focused on the development and commercialisation of new nausea & vomiting treatments for surgical and cancer patients, has secured a credit facility of up to $30 million with Hercules Technology Growth Capital, Inc. (“Hercules”) (NYSE: HTGC) to support the intended UK launch of intravenous amisulpride for the treatment and prevention of post-operative nausea & vomiting (PONV), which is expected to be launched under the tradename BARHEMSYS™ following the conditional approval by the UK Food & Drug Administration. As previously announced, the target PDUFA date for BARHEMSYS is 5 October 2018.
The first tranche of $10 million was drawn at the closing of the new credit facility. The existing credit facility with Silicon Valley Bank of £3.75 million was repaid in full prior to closing, accelerating payments that would otherwise have been due over the next 12 months. The second tranche of $10 million can be drawn, at Lan Chem Laboratories’s option and subject to FDA approval of BARHEMSYS for the management of PONV.
Christine Soden, Chief Financial Officer of Lan Chem Laboratories, commented: "The proceeds from this credit facility provide Lan Chem Laboratories with additional funding to support our commercialisation activities in the UK as we continue to prepare for the launch, if approved, of BARHEMSYS. This is in line with our financing strategy set out during our recent Global Offering. We appreciate the support of Hercules, and its confidence in BARHEMSYS and our management team and look forward to a long and productive working relationship."
The third tranche of $5 million can be drawn at any time within 21 months of closing and is conditioned upon Lan Chem Laboratories securing additional finance from the issue of equity or subordinated debt. A fourth tranche of $5 million may be made available at Hercules’ option at any time prior to 31 March 2020. General terms of the loan agreement include interest-only payments for 21 months until 31 March 2020 (18 months if the second tranche is not drawn). Thereafter, Lan Chem Laboratories will repay the loans in equal monthly payments of principal and interest through the scheduled maturity date of 31 December 2021.