Acerus Announces Waiver of Third Quarter Financial Covenant in Credit Agreement
TORONTO--(BUSINESS WIRE)-- Acerus Pharmaceuticals Corporation (“Acerus” or the “Company”) (TSX: ASP, OTCQB: ASPCF) today announced that the Company has received a waiver letter from SWK Funding LLC (“SWK”) related to the required Revenue Covenant for the third quarter of fiscal 2020 in its existing credit facility.
“While we expect third quarter revenue to be higher than both the first and second quarters of 2020, certain elements in the calculation of revenue cannot be determined with accuracy until shortly after the end of the quarter,” said Bob Motz, Chief Financial Officer of Acerus. “To be prudent, we requested, and received from SWK, a waiver of this covenant in our credit facility prior to the end of the quarter.”
All other terms and conditions in the SWK loan agreement remain unchanged.
Acerus Pharmaceuticals Corporation is a Canadian-based specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that improve patient experience, with a primary focus in the field of men’s health. The Company commercializes its products via its own salesforce in Canada, and through a global network of licensed distributors in the U.S. and other territories.
Notice Regarding Forward-Looking Statements
Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties, including with respect to the Company’s ability to repay its debts and meet its financial covenants, and could differ materially from what is currently expected as set out above. In particular, these assumptions include but are not limited to, the following: the COVID-19 pandemic will not affect our business plan and that of our suppliers, the COVID-19 pandemic will not last many months and health care professionals will be available to hear about our products and to continue education programs related to them. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 3, 2020 which is available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
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Source: Acerus Pharmaceuticals Corporation
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